Tesla Announces 3 to 1 Stock Split!

Work for Torque News, follow on Twitter, Youtube and Facebook.

Tesla has recently announced that it will split its stock 3 to 1. This is a good sign that Tesla feels confident in their future and that the company is going to continue to increase production, improve their vehicles, and meet their goals for the future.

Tesla Announces 3 to 1 Stock Split!

From a recent video by Steven Mark Ryan, Tesla has just announced its second stock split since the company went public. The first stock split was a 5 to 1 split. This next split will be a 3 to 1 split. This means there will be more shares available and at a lower cost. Why is this good for Tesla? Let's find out.

Tesla is dominating the electric vehicle (EV) market in the United States and in China. The rotation into EVs is accelerating and Tesla is in the prime position to take advantage of it. The only thing that could derail this a little bit would be a recession. The markets had a down day today, due to high inflation.

Tesla has already forecasted a split. In reality, this shouldn't affect Tesla as a company as it has no effect on how many vehicles they produce. It has no effect on improvements to the Model 3,Model Y, Model S, or the Model X. But a public company like Tesla has shares of stock on the open market...

A lot of people look at Tesla as the prime leader in EVs, barring a recession. Even in a recession, all other companies, including Tesla, will be affected, so I think that Tesla would still maintain its huge lead in EVs.

Tesla's Statement of the Split of Stock

Tesla stated this exact statement in a filing to go from 2 billion shares to 6 billion shares of stock:

"Our success depends on attracting and retaining excellent talent, not only through providing a respectful, safe, inclusive and equitable workplace, but also through offering outstanding benefits and highly competitive compensation packages. Unlike other manufacturers, we offer every employee the option of receiving equity. Since our stock split in August 2020 to June 6, 2022, our stock prices has risen 43.5%.

While this value appreciation has led to our employees benefiting enormously through the years, we want to make sure all employees, no matter when they join, have access to the same advantages. We believe the Stock Split would help reset the market price of our common stock so that our employees will have more flexibility in managing their equity, all of which, in our view, may help maximize stockholder value."

You can see that Tesla really cares about their employees and anyone that owns their stock. Not only does Tesla make great EVs, they truly care about those who have benefited and helped the company progress forward.

The date for approval of the stock split will be 8/4/2022. During Tesla's last split, the stock rose 81.3%, soaring to all time highs. It will be interesting to see what happens this time, in much different global conditions.

What do you think about Tesla's split - is this a good idea? Will the price of Tesla stock increase?

Leave your comments below, share the article with friends and tweet it out to your followers.

For more information, see this video by Steven Mark Ryan:

Jeremy Johnson is a Tesla investor and supporter. He first invested in Tesla in 2017 after years of following Elon Musk and admiring his work ethic and intelligence. Since then, he's become a Tesla bull, covering anything about Tesla he can find, while also dabbling in other electric vehicle companies. Jeremy covers Tesla developments at Torque News. You can follow him on Twitter or LinkedIn to stay in touch and follow his Tesla news coverage on Torque News.

Image Credit, Steven Mark Ryan, Screenshot