Tesla Applied For Share Splitting For The Second Time In Two Years. In August, The General Meeting Of Shareholders Voted On A Number Of Proposals

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Tesla stock split makes it easier for ordinary people to buy its shares. Recently, Tesla submitted a document to the US Securities and Exchange Commission (SEC), announcing that the 2022 general meeting of shareholders will be held on August 4 (US time) at Texas super factory in the United States. At that time, the shareholders' meeting will vote on 13 proposals. Among them, Tesla announced in the fourth proposal that the company plans to split shares in a ratio of 3 to 1.

Tesla said that the potential stock split plan will provide greater flexibility for employees to manage their equity, help reset the market price of Tesla shares and make it easier for ordinary people to buy shares.

On June 10, Eastern time, Tesla closed down 3.12% to $696.69, with a total market value of nearly $721.8 billion. After hours, affected by the above news, Tesla US stocks rose 1.91% to US $710.

This is Tesla's second stock split in two years. In August, 2020, Tesla announced a 5-to-1 split of its shares. Affected by this, Tesla's share price rose sharply, from less than $280 on August 11, 2020 to nearly $500 at the end of August (the share prices were all pre compound rights). At the end of the year, Tesla's share price further rose to over $700.

Shenmeng, executive director of Xiangsong capital, told China business news that there was no difference in essence between before and after the split. "It was just a cake cut into four pieces or eight pieces." However, share splitting can reduce the unit price per share and allow more investors to participate in trading. Therefore, it can improve the activity of stock trading. If the market is generally optimistic about the company's prospects, it can also stimulate more people to participate in trading, which has the potential effect of pushing up the stock price.

Since April this year, Tesla's share price has been falling all the way. As of June 10, the cumulative decline has exceeded 35%.

In addition, according to foreign media reports, Tesla's move may also aim to include it in the Dow Jones industrial average, which often includes cheaper stocks. For example, Apple The company announced a 7-to-1 stock split in 2014 and was included in the Dow Jones index in 2015.

In this regard, Shen Meng pointed out that before the stock split, Apple's share price was obviously too high compared with other stocks, and its weight would be too large if it was included in the Dow Jones index, so the stock split was carried out. The statement that Tesla intends to be included in the Dow Jones index through stock split is reasonable.

Recently, many other large technology companies have announced stock splits. Amazon conducted a 20:1 share split earlier this month, and the 20:1 share split plan of Google's parent company alphabet will take effect in July. The total market value of the two companies exceeds trillion US dollars.

In addition, Tesla plans to vote on the proposal of the annual report on anti harassment and discrimination at the general meeting of shareholders, and whether to allow employees to form or join trade unions.

Tesla CEO musk has always opposed the establishment of trade unions by employees. In 2018, musk said through public channels that if employees form a trade union, their stock options will be cancelled. In March this year, musk once again satirized the UAW, saying that UAW stole millions of dollars from workers, while Tesla made many workers "millionaires" through stock grants.

Recently, under Musk's pessimistic attitude towards the economic environment, the labor relations between Tesla and its employees are also changing. In early June, several sources confirmed that musk sent an email to employees, saying that each employee of Tesla must stay in the office at least 40 hours a week. If the employee does not come, Tesla will consider that the employee has resigned. Two days later, some media said that musk released an e-mail titled "suspension of global recruitment" to its internal executives, saying that Tesla needed to cut about 10% of its staff.

However, musk later explained that Tesla would increase the number of hourly workers, but the number of salaried employees should be relatively stable, which may increase the overall number of Tesla employees.

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