Tesla’s shareholders have approved the US electric car maker’s second stock split in around two years. In the campaign, each existing share is to be converted into three new ones. This makes the share certificates cheaper and more accessible for small investors.
Tesla announced the plan in March and said in June that the split would go 3-for-1. At the general meeting on the premises of the Gigafactory Texas, the shareholders gave the green light on Friday night (CET). When exactly the split should take place was initially unclear. Stock splits don’t actually change a company’s market value, but they do lower the price per share. The papers can thus become more attractive, especially for small investors, even if many brokers are already offering to buy shares proportionately.
Union has no chance at Tesla for the time being
A total of 13 points were up for vote during the shareholders’ meeting. Tesla shareholders voted according to Reuters
mostly for the Board’s recommendations on most issues.
For example, the proposal was rejected by shareholders who supported the right of employees to form a union and asked Tesla to report annually on its efforts to prevent racial discrimination and sexual harassment, as well as on the water risk in factory operations. Tesla was recently criticized by authorities in California and federal authorities for possible discrimination at the main plant in Fremont.
Elon Musk announces more factories and more cars
Elon Musk, dressed all in black, made a major impact on voting during the shareholders’ meeting, according to Reuters, and addressed an enthusiastic crowd afterwards. According to data provider Refinitiv, Musk still owns 15.6 percent of Tesla stock after selling millions of shares last year.
Musk told the shareholders that Tesla wants two million every year in the future electric cars produce and at the same time announced the construction of a new factory. Musk did not name a possible location for the new factory. According to him, Tesla could operate up to twelve gigafactories in a few years. Tesla currently operates factories in California and Shanghai and is building two more in Austin, Texas and near Berlin.
However, against opposition from the board, shareholders voted in favor of an advisory proposal that gives investors more options for nominating directors. Two Board proposals – reducing the term of office of Directors to two years and removing the requirement for a majority vote – did not receive the majority required for adoption.