Blog Tesla Announces Stock Split

Tesla announced Tuesday a 5-for-1 stock split in an effort to bring the highly-price stock down to attract more investors.

According to a SEC filing: Each stockholder of record on August 21, 2020 will receive a dividend of four additional shares of common stock for each then-held share, to be distributed after close of trading on August 28, 2020.

The split wasn’t a total surprise, but it came sooner than expected. When asked on Twitter on June 30 about the possibility of a split, Musk said it was “worth discussing” at the company’s upcoming annual shareholder meeting.

https://twitter.com/x/status/1278172605477007360

Tesla’s stock has received a big bump in recent months, more than quadrupling since March. The stock jumped nearly 6.6 percent after the announcement to $1,465.00 by 7:30 a.m. Wednesday. The current valuation makes Tesla the largest automaker in the world.

 

[ggr]

Dividends are paid from money taken from the shares and thus reduce the shares by the exact amount of the dividend. This is normal. If AT&T pays a one dollar dividend, the share price is reduced by one dollar. Tesla will pay a dividend of precisely 20% of Friday’s closing price for each dividend share.

That is completely wrong. There is plenty of information in the investors' threads, a lot of it correct. It costs Tesla virtually nothing to issue the dividend shares (technically, a book transfer of $0.001 per share).

 

[HankLloydRight]

Dividends are paid from money taken from the shares and thus reduce the shares by the exact amount of the dividend. This is normal. If AT&T pays a one dollar dividend, the share price is reduced by one dollar. Tesla will pay a dividend of precisely 20% of Friday’s closing price for each dividend share.

That is completely wrong. There is plenty of information in the investors' threads, a lot of it correct. It costs Tesla virtually nothing to issue the dividend shares (technically, a book transfer of $0.001 per share).

I completely agree. The math doesn’t even work. Nobody is receiving an actual dividend.

 

[John Frum]

A dividend ? Thus that mean it will be taxed ?

You will not be taxed on the split. Think of it as trading a five dollar bill for five one dollar bills.