Source: China Fund News
Tesla disclosed in the SEC filing that it will ask shareholders at the annual shareholder meeting to authorize an increase in the number of shares of the electric vehicle manufacturer in order to split the shares and pay dividends in the form of stock dividends. It is reported that the relevant share split decision is still subject to the final approval of the board of directors.
Tesla also said on social media that it will require shareholders to vote at this year's annual shareholders' meeting to authorize additional shares to achieve the split.
Theoretically, the stock split of listed companies is conducive to lowering their investment threshold, increasing liquidity and investor enthusiasm for investment, thereby boosting stock prices. On August 31, 2020, Tesla had a stock split with a split ratio of 1:5. Five months after the split, Tesla's stock price rose nearly 80% at one point.
Tesla's stock price was also greatly boosted by the planned stock split, rising 8% on Monday, and the market value soared by $84 billion, or about 535.2 billion yuan.
Driven by Tesla, most of the other technology stocks rose. Apple rose 0.50 percent, Amazon rose 2.56 percent, Netflix rose 1.25 percent and Microsoft rose 2.31 percent, but Google A fell 0.15 percent.
Weilai rose 6.53%, and Ideal and Xiaopeng rose slightly by 0.3%.