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Does Tesla (TSLA) Stock Pay Dividends?

InvestorPlace2022-03-30

Does Tesla(NASDAQ:TSLA) stock pay dividends? Not typically. However, with news yesterday that the company is planning another stock split, this question is top of mind.

TSLA Stock Dividend History

Importantly, Tesla does not pay out any standard cash dividends to shareholders. In fact, it makes its positioning on this matter clear. Its website states that it does not anticipate ever issuing such a dividend, because it “[intends] on retaining all future earnings to finance future growth.”

However, there is a reason that investors are curious about Tesla dividends now. That is because when the company enacted its last stock split in 2020, it carried out a dividend payout. In the 5-for-1 stock split, each shareholder received an additional four shares for everyone one they held. The company said this was a way to make shares more accessible to employees and investors.

In this case, the dividend payout was the additional four shares. The main impact of this was that the stock split diluted shares.

After the stock split, however, TSLA stock took off. Shares have more than doubled since Tesla last split its shares.

Now, investors want to know what the new proposed stock split will mean.

The Upcoming Stock Split

Tesla has not revealed many details around the potential 2022 stock split, which still needs shareholder approval. We do know that the proposal will come to a vote at its next annual meeting, which is likely to take place in June. In the meantime, investors must wait for the release of its proxy statement. According to the 8-K filing, this document will include all necessary information.

One thing that the filing makes clear is that Tesla wants to issue another stock dividend. As it states, the company is seeking shareholder approval “in order to enable a stock split of the Company’s common stock in the form of a stock dividend.”

Its last stock split worked well for both investors and the company. Now Tesla needs to open itself up to new groups of investors, and another stock split makes perfect sense.

What Comes Next

Until Tesla releases its proxy statement, all investors can do is wait and watch closely. If shareholders do approve a stock split proposal, it is likely that TSLA stock could rise again.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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Comment39

  • Lion91
    ·2022-03-31
    Like for like
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  • Home22
    ·2022-03-30
    More affordable after split...... aftet that can buy call options 🚀Opportunties coming 👍🏻
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  • Mr Mooney
    ·2022-03-30
    Be careful when invest in tesla. If share can go up So high...that mean can go down a lot also.
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  • Long for long time
    ·2022-03-30
    Just keep buying Tesla until stock split coz once split it's gonna skyrocket ....
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    • Home22
      👍🏻🚀
      2022-03-30
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  • Metawee
    ·2022-03-30
    Buy
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  • Big Money
    ·2022-03-30
    [Miser] 
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  • Jason_LSE
    ·2022-03-30
    I prefer Tesla to keep growing rather than paying dividend. 
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    • Jason_LSE
      Now, also wishing Twitter to grow like Tesla [Happy]
      2022-04-06
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  • MSTAN
    ·2022-03-30
    👌👌
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  • KSHoSG
    ·2022-03-30
    [Thinking] 
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  • chinks29
    ·2022-03-30
    Good
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  • TCF
    ·2022-03-30
    Just aim for capital gain .. 
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  • 咩咩虎
    ·2022-03-30
    Ok
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  • JLiP
    ·2022-03-30
    Will they pay? I hope not 
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    • AS78
      Ok
      2022-03-30
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  • ThinkOrSwim
    ·2022-03-30
    Tesla investors don't need dividends from TSLA. They want to see continued growth, innovation and vision - and occasional meme jokes from ELON. 🤣🤣 Speaking of which, now is a good time to consider rewarding shareholders with Starlink or SpaceX shares too! 😂😂 Just kidding!!! 
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  • Thomas9413
    ·2022-03-30
    Great 
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  • Remotecam
    ·2022-03-30
    There's a small chance the shareholders won't approve $Tesla Motors(TSLA)$stock split.  Plus it'll be a few months away at least.  I'll wait for the next dip to buy.  Way too high now. Or buy after the split.  
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    • Remotecam
      It would depend on the condition of the market at time of voting.  Imagine bear market conditions & Tesla stock is down 70%.  Stock holders may not want to dilute value further.  Anything's possible.
      2022-03-30
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    • Long for long time
      Why do you think investors wont vote for split
      2022-03-30
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    • WS_long
      Ok
      2022-03-30
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  • Otahman
    ·2022-03-30
    Like pls
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  • SSVC
    ·2022-03-30
    K
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  • har888
    ·2022-03-30
    👍 
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  • hohok
    ·2022-03-30
    Pls like
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