Type to search

Tesla Shares Rise on EV Maker’s Stock Split Plans

Tesla also said Oracle co-founder Larry Ellison, a friend of chief executive Elon Musk, will not stand for re-election to the electric vehicle manufacturer’s board

Bitcoin fell 0.5% on news that Tesla had sold about 75% of its holdings as the electric car company announced second-quarter results.
Elon Musk said the primary reason for the bitcoin sale was uncertainty about lockdowns due to Covid-19 in China, which have created production challenges for Tesla. File photo: Reuters.


Tesla shares rose nearly 2% in after-hours trading on Friday after the electric vehicle company proposed a three-for-one stock split.

If approved in a shareholder vote on August 4, it would be the company’s first such action after a five-for-one split in August 2020.

Tesla said the split would enable its employees to “have more flexibility in managing their equity” and make its stock “more accessible to our retail shareholders.”

The shares have fallen nearly 40% since Musk unveiled his stake in Twitter in early April, hurt in part by a strict lockdown in Shanghai that has affected production.

The company also said Oracle co-founder Larry Ellison, a friend of Tesla chief executive Elon Musk, will not stand for re-election to Tesla’s board when his term ends at this year’s shareholder meeting.

Ellison is among the top investors who have promised funding towards Musk’s proposed $44 billion acquisition of social media firm Twitter.

Alphabet, Apple and Amazon.com have also recently split their shares.

While a split has no bearing on a company’s fundamentals, it could buoy Tesla shares by making it easier for a wider range of investors to own the cheaper stock.

Tesla will also ask shareholders to vote to reduce its board of directors’ terms to two years from three. If approved, the terms would be staggered over two years.


  • Reuters, with additional editing by George Russell



Tesla’s China Production Could Fall 33% in Second Quarter

Tesla Cancels China Hiring Events Amid 10% Layoff Warning

China’s BYD Working with Tesla on EV Battery Supply Deal


George Russell

George Russell is a freelance writer and editor based in Hong Kong who has lived in Asia since 1996. His work has been published in the Financial Times, The Wall Street Journal, Bloomberg, New York Post, Variety, Forbes and the South China Morning Post.


AF China Bond