Tesla (TSLA) Follows Other Tech Giants in Seeking Stock Split

Tesla (NASDAQ: TSLA) shares gained 4% in pre-open trading Monday after the company said it would seek shareholder approval at the upcoming Annual Meeting to increase the number of authorized shares to enable a stock split.

In the move, Tesla is following the likes of tech giants Google (NASDAQ: GOOGL) and Amazon (NASDAQ: AMZN) in splitting their stock. Both Google and Amazon are splitting 20-for-1. Tesla did not indicate the ratio of the expected split. Tesla last split its stock in August of 2020 at a 5-for-1 ratio.

A stock split doesn't change the company's fundamentals but will make the shares cheaper on a per-share basis, allowing for easier shareholder access. Although this argument losses luster as many brokerages offer fractional share ownership. Still, stock splits have been catalysts for big tech companies announcing them, and Tesla's stock should also benefit from the news.

By Lon Juricic

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