Tesla's 3-for-1 Stock Split Approved at Shareholders Meeting, Reaching 300 Sla

[Image source=AP Yonhap News]

[Asia Economy New York=Special Correspondent Joselgina] American electric vehicle company Tesla is undergoing a stock split again after two years.

Tesla held its annual shareholders' meeting at its Texas headquarters on the 4th (local time) and approved a 3-for-1 stock split. This is Tesla's first stock split since August 2020, when it split one share into five.

With this split, Tesla's stock price will drop from the current $900 per share to around $300 per share. Although a stock split does not change the capital structure, the increase in the number of shares and the lower price per share make it easier for investors to access, which is seen as positive news in the market. It also signals the management's confidence in the future stock price. Wall Street analysts say this split increases the likelihood of Tesla being included in the Dow Jones Industrial Average 30.

Elon Musk, Tesla's Chief Executive Officer (CEO), confirmed at the shareholders' meeting that "share buybacks are possible." He projected a production scale of 2 million units by the end of 2020. He also mentioned, "We may announce another factory location by the end of the year."

Regarding inflation, CEO Musk said, "The prices of raw materials used by Tesla are trending downward," and predicted that the peak has passed. He forecasted that the recession would be at a moderate level. He refrained from making direct comments about the lawsuit initiated over the termination of the Twitter acquisition.

Meanwhile, in the New York stock market this afternoon, Tesla closed at $925.90, up 0.40% from the previous session.