When you invest, your capital is at risk.


Tesla To Undertake A 3:1 Stock Split

Tesla Shareholders have voted in favour of the company’s second stock split in as many years at its 2022 AGM.

The company ($TSLA) will undertake a 3-for-1 stock split that it has said will make ownership more accessible to employees and individual investors.

How Will It Work? 

Tesla’s plan is to split their stock 3:1.

Tesla stock closed at US$752.29 on July 8, 2022, the date it filed its proxy statement with the SEC. If the price is the same on the date of the split, each share would become three shares, worth US$250.76. Each shareholder would have three times the number of shares they had previously, with each share worth one-third of the price of a single share prior to the split. The total value of the investor’s Tesla position would remain unchanged.

Has Tesla Done This Before? 

The Elon Musk-led car maker previously executed a five-for-one stock split back in 2020, a move that led to a 60% surge in the share price from the day of the announcement to the execution date.

What Was Tesla’s Stock Price When It Split In 2020?

Prior to Tesla’s 5:1 stock split in 2020 its stock had been trading at US$2,213 per share. After the split, each share traded at US$498.32, indicating an increase in response to the split. 

The move doesn’t affect the company’s market value, which topped US$960b ahead of the shareholder meeting.


The gathering follows a recent rally in the stock price following a better than expected second-quarter earnings. Tesla generated US$2.3b billion in profit for the period, ahead of Wall Street’s expectations but below its record quarterly profit of US$3.3b earlier in the year.

During the meeting, investors also discussed some concerns shareholders have with Tesla’s corporate governance, including scrutiny from authorities over alleged racial discrimination.

But in the end shareholders voted in line with board recommendations on most issues at the company’s annual meeting on Thursday, reelecting directors, and rejecting a number of proposals focused on environment and governance.

Chief Executive Elon Musk spoke to investors, outlining his plans for expansion. 

The company is aiming to hit a production run rate of two million vehicles per year by the end of 2022 and will continue building factories.

Tesla has factories in California and Shanghai and is ramping up two more in Austin, Texas and Berlin. Musk said Tesla might be able to announce an additional factory this year and he expected eventually to have 10-12 so-called gigafactories.

Don’t have Stake?

Start ahead of the game. Get a free stock in one of Nike, Dropbox, GoPro or a mystery stock when you sign up and fund your account within 24 hours.

When you invest, your capital is at risk.

Stake logo
Download Stake
App Store logo
Google Play logo
The value of your investments can go down as well as up, so you could get back less than your original investment. Any advice is of a general nature only. As investments carry risk, before making any investment decision, please consider if it’s right for you and seek appropriate taxation and legal advice. The information on our website or our mobile application is not intended to be an inducement, offer or solicitation to anyone in any jurisdiction in which Stake is not regulated or able to market its services. At Stake, we’re focused on giving you a better investing experience but we don’t take into account your personal objectives, circumstances or financial needs. Please view our Terms & Conditions, Privacy Policy and Disclaimers before deciding to use or invest on Stake. By using the Stake website or service in any way, you agree to our Privacy Policy and Terms & Conditions. All financial products involve risk and you should ensure you understand the risks involved as certain financial products may not be suitable to everyone. Past performance of any product described on this website is not a reliable indication of future performance. Stake is the trading name of Hellostake Limited (no. 11676409), authorised and regulated by the UK Financial Conduct Authority (FRN: 830771).

Copyright © 2023 Stake. All rights reserved.