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Tesla Stock Split Vote 2022: What You Need to Know

Tesla Stock Split Vote 2022: What You Need to Know

Tesla is looking to make its stock cheaper for investors.

Tesla Stock Split Vote

Shareholders voted and approved the 3-for-1 stock split at its annual meeting on Aug. 4. Tesla announced its board of directors greenlit the proposal when it submitted a filing to the SEC in June.

Tesla Stock Split History

The electric car maker split its stock 5-to-1 in August 2020. Then it said it wanted to make “stock ownership more accessible to employees and investors.”

Tesla Stock Fair Value

Morningstar recently raised Tesla’s fair value estimate, or what we think the stock is worth. The estimate rose $10 to $760 a share.

The 3-for-1 stock split will work like this.

Investors will receive two additional shares for each one they own. We estimate each share will be worth about $253. The overall value of your shares will remain the same with the stock split. You will just have more of them.

Tesla Earnings Report

Morningstar’s fair value estimate boost followed Tesla reporting its second-quarter earnings on July 20.

Morningstar senior equity analyst Seth Goldstein says Tesla's profits rose 45% from last year but dropped 20% compared with last quarter.

COVID-19 lockdowns and factory openings dragged on the electric car maker’s bottom line.

When Will Tesla Stock Split in 2022?

Tesla’s stock is scheduled to split after market close on August 24th. Shares are expected to begin trading on a split-adjusted basis the next day on August 25th.

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