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Tesla plans another stock split


new York
CNN Business

Tesla is asking its shareholders for permission to split its shares for the second time in two years.

This split would take the form of a dividend, which would pay shareholders additional shares. Most dividends are paid in cash to investors.

The electric car maker did not give details on how many shares investors would receive. Its previous split in August 2020 gave shareholders five shares for every share they already held.

Tesla shares had struggled earlier this year, but have been on the run since announcing it had received approval from the German government to deliver the first cars built at its new factory outside Berlin. The shares are up 32% since closing at $766.37 just two weeks ago. They closed Friday at $1,010, again giving the company a market value of over $1 trillion.

In premarket trading, Tesla shares rose 5%.

A number of other high-flying tech stocks have recently announced stock splits, including Amazon (AMZN) and Google owner Alphabet (GOOG). The two have announced plans for 20-to-1 stock splits since early February.


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