[Asia Economy New York=Special Correspondent Joselgina] Tesla reported to the U.S. Securities and Exchange Commission (SEC) on the 10th (local time) that it will split its stock 3-for-1.
According to the U.S. economic media CNBC, Tesla submitted an annual shareholder meeting agenda report containing this information to the SEC on the same day.
Tesla stated, "We believe the stock split will help reset the stock price." It also said, "The company's success depends on attracting talent and competitive stock compensation packages," adding, "The stock split will provide employees with greater flexibility in managing their shares."
Tesla will hold its shareholder meeting on August 4. The report also revealed that CEO Elon Musk holds 23.5% of Tesla's shares. Board member Larry Ellison will step down. There was no mention of a successor.
On the New York Stock Exchange that day, Tesla closed at $696.69, down 3.12% from the previous session. After the split news was announced, it rose more than 1% in after-hours trading, hovering around the $705 level.
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