Tesla shareholders voted in favor of a 3-for-1 stock split at the company's annual meeting on Aug. 4.

Shareholders will see more shares of Tesla stock in their account after the stock split takes place on Aug. 24.

The shares will trade at a split-adjusted price on Aug. 25.

Tesla is moving forward with its second stock split on Aug. 24. Shareholders approved the 3-for-1 stock split at the company's annual meeting this month.

If you're confused about stock splits, below is a breakdown of how they work, so you can set your expectations.

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Stock splits are taking over headlines in 2022

Large tech companies have been dominating stock-split news this year. Amazon pursued its first stock split since the dot-com boom, completing a 20-for-1 stock split on June 3. E-commerce giant Shopify completed a 10-for-1 split of its common stock on June 28. Then, the parent company of Google, Alphabet, wrapped up a 20-for-1 stock split on July 15.

Now, Tesla is back in the spotlight after completing a 5-for-1 stock split in 2020. The electric vehicle maker hinted at a stock split earlier this year, and now the big day is taking place this month. If you haven't been following Tesla this year, here's a look at the company's stock-split timeline.