Busy Few Days For Tesla: Stock Split Plan, Factory Halt, Musk Eyeing Social Media

Split for Stock Dividend

Tesla (TSLA) submitted a filing to the SEC yesterday indicating the company wants to split its stock and then pay a stock dividend. Unlike cash dividends, stock dividends grant shareholders additional shares. A vote will be held at the annual shareholder’s meeting over whether to increase the authorized shares of common stock, which is necessary to make the split possible.

The last time Tesla split its stock was in August 2020, and its share price has doubled since then. While 2022 has seen the stock struggle at times, Tesla experienced significant share price gains throughout the pandemic. The stock has also risen annually for five straight years.

Suspended Production

As word of the potential stock split circulated, Tesla announced vehicle production was being suspended at the company’s factory in Shanghai for at least one day. This came in response to a lockdown instituted by Chinese authorities in order to conduct COVID-19 testing.

Shanghai is China’s financial hub, and Tesla also had to halt production for two days earlier this month due to COVID-19 restrictions. Meanwhile, CEO Elon Musk says he’s contracted the coronavirus for the second time. Musk previously disclosed that he and his family are vaccinated, and his symptoms are reportedly mild at present.

Musk’s Social Media?

As last week drew to a close, before Tesla had shared its stock split plan or announced the suspended production, Musk generated a buzz talking about social media. He posted on Twitter (TWTR) over the weekend arguing the platform doesn’t permit free speech.

A follow-up tweet asked if a new platform is needed, and Musk admitted he’s given “serious thought” to the idea of creating his own social media network. The Tesla and SpaceX billionaire has clashed with SEC regulators ever since he asked his followers if he should sell his stock, which sent the electric vehicle maker’s share price lower. Musk has claimed the SEC is harassing him.

It was certainly a busy weekend for Musk, who wants to make the Tesla split happen while navigating ongoing challenges and new possibilities.

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Adviser
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.
SOSS22032901