Tesla 3-for-1 stock split

In this article, I will summarize on the recent Tesla amendment for the adoption of the stock split

General

We are submitting to our stockholders a vote to adopt the inclusion of certain provisions in the proposed amended certificate to increase the number of authorized shares of common stock by 4 billion shares.

The board has approved the authorized shares amendment subject to its adoption by our shareholders. Honestly I don't see why this won't go through but let's move on.

Summary of the proposal amendment

The authorized shares amendment provides an increase in the number of authorized shares of Tesla common stock from 2 billion shares to 6 billion shares

Reasons for proposed amendment

The primary purpose of the authorized shares amendment is to facilitate a 3-for-1 split of our common stock in the form of a stock dividend. As of 6 June 2022, Tesla have about 1.036 billion shares of common stock outstanding and the current number of authorized shares of our common stock is 2 billion which is insufficient to effectuate the stock split. Our board intends to approve the stock split, subject to and contingent upon stockholder approval of the authorized shares amendment.

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 price has risen by 43.5%. while this value appreciation has led to our employees benefitting enormously through the years, we want to make sure all employee, 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 maximise stockholder value.

In addition, as retail investors have expressed a high level of interest in investing in our stock, we believe the stock split will also make our common stock more accessible to our retail shareholders.

My warm congratulations to all Tesla stockholders!