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Tesla files for 3-for-1 stock split

Elon Musk, during an event at SpaceX headquarters in Hawthorne, California, U.S., on Thursday, Oct. 10, 2019.
Bloomberg /Getty

Tesla just filed its annual proxy statement with the SEC and revealed it plans a three-for-one stock split, and that board member Larry Ellison does not plan to stand for re-election.

In the filing, the company wrote of the proposed stock split, “Our success depends on attracting and retaining excellent talent,” and that “highly competitive compensation packages,” offering every employee an option to receive equity, helped Tesla to do that. “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.”

A stock split of this nature could mean that more smaller investors feel they can afford the stock, but those investors are minuscule compared to major institutions. Many brokerages also already offer investors fractional trading, allowing small investors to buy a slice of seemingly expensive stocks.

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