Tesla Inc. has proposed a 3-for-1 stock split in its proxy statement filed late Friday, saying it would provide more flexibility for its employees managing their equity and serve as a recruiting tool.
rose nearly 2% in the extended session Friday after the news, which would put the electric-vehicle maker in company with Amazon.com Inc.
which did a 20-for-1 split earlier this month, and Google parent Alphabet Inc.
which similarly to Tesla had to get shareholder approval to complete its 20-for-1 split also in early June.
The split would be Tesla’s second in as many years. The EV maker did a 5-for-1 stock split in August 2020, and the shares are up nearly 40% since.
Tesla in late March unveiled plans to enable the second split, and the stock shot up 8% then.
The split would hinge on shareholders’ approval of an increased share count. Tesla set its annual shareholder meeting for Aug. 4 at the company’s Austin, Texas, headquarters, which will be webcast.
Also on the table for the annual meeting are five Tesla proposals, including one seeking the re-election of two of its board members, Ira Ehrenpreis and Kathleen Wilson-Thompson.
Tesla is recommending shareholders to vote against eight shareholder proposals, including proposals about annual disclosing of anti-harassment and discrimination efforts and board diversity.
The proxy also disclosed that Oracle Corp.
co-founder and Chief Technology Officer Larry Ellison will not stand for re-election.
A member of the Tesla board since 2018, Ellison participated in fewer board meetings than other directors, as he was “required to devote substantial time to an atypically high volume of critical business meetings in 2021,” the filing said.
Tesla shares have lost 34% this year, compared with losses of around 18% for the S&P 500 index
in the same period.