Gary Zhou 
Tesla recently released an official notice about an upcoming stock split decision coming later this year. Tesla aims to ask its shareholders at the 2022 Annual Shareholders’ Meeting to vote their opinion on another stock split.
“Tesla will ask shareholders to vote at this year’s annual meeting to authorize additional shares in order to enable a stock split,” the Austin-based automaker noted on Twitter this week. However, this is certainly a forward-looking statement by Tesla and if the company’s shareholders don’t approve it, the 2022 TSLA stock split will be called off.
Many Tesla investors are looking at this move by the automaker as “bullish” in light of past events. The first-ever Tesla stock split took place back in 2020. This made the purchase of TSLA shares more affordable — especially for retail investors. In turn, the share price surged between the time of the announcement (August 11th, 2020) and when it took effect (on August 31st, 2020).
Looking back, the pre-split TSLA share price was $2,213.40 when it closed on Friday, August 28th, 2020. After the five-for-one stock split, the price was adjusted to $442.68.
Tesla also announced the intent to split the stock this year after final board and stockholder approval in its 8-K filing with the SEC (see above) noting the potential “for an increase in the number of authorized shares of common stock.”
Tesla shares quickly trended up after the news — at market close on Monday, March 28th, TSLA’s share price reached $1,091.84 on NASDAQ — an increase of +81.20 (8.03%) compared to when markets closed on Friday.
Wedbush analyst Dan Ives thinks the news of the upcoming Tesla stock split in 2022 is going to be a “massive catalyst” for the stock price in the coming weeks and months.
For the last two years, the Tesla annual shareholders’ meeting has been getting delayed mainly due to the COVID situation. However, historically, these meetings have been held mostly in the month of June (as noted by Troy Teslike / Marquezz via Twitter).
That said, there’s no imminent hurdle this year, so the most probable date for the 2022 Tesla Shareholder Meeting is expected to be the first week of June.
At that time, we’ll see if the stock split vote has an impact like the prior time this occurred within the company. If so, it could be viewed positively on Wall Street.
Written by: Iqtidar Ali. An earlier version of this article was originally published by Tesla Oracle. Revised update edited by EVANNEX.
