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Tesla Schedules Its Annual Meeting. A Stock Split Approaches.

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Tesla scheduled its 2022 annual stockholders meeting for later this year.

Spencer Platt/Getty Images

Mark your calendars:

2022 annual meeting of stockholders will be held on Aug. 2, in Austin, Texas.

This meeting matters a little more than others because it will clear the way for another stock split. Investors like the idea of a stock split because of what happened last time. Tesla (ticker: TSLA) split its stock in August 2020 and shares rose more than 60% in the two and a half weeks between the announcement and the actual split.

Back in March, Tesla said it was planning another split, but this second split in the past couple of years requires a shareholder vote to increase the actual number of shares authorized in the company’s by-laws. That will take a vote at the annual meeting.

The vote should be a formality. Investors aren’t likely to vote that idea down.

There aren’t any details of the split in Tesla’s press release from Monday. Investors will have to wait a little longer for information like the ratio of the coming split. The split in 2020 was 5-for-1.

The most optimistic view of stock splits is they signal something positive about management’s expectations for a business. A less optimistic view is that value doesn’t change and that a split isn’t a significant event.

Tesla stock isn’t doing much immediately following the announcement. Shares were down 0.3% in premarket trading.

S&P 500

Dow Jones Industrial Average
futures both fell about 0.1%.

Coming into Tuesday trading, Tesla stock has fallen about 18% year to date. Most of that drop came in April amid a broader selloff in the market and some declines after CEO Elon Musk announced his plans to buy



Tesla shares fell 19% in April.

Write to Al Root at

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