Electric vehicle maker Tesla Inc (TSLA.O) on Friday proposed a three-to-one stock split, making its shares more affordable following recent sell-offs of the most valuable automaker.
The company also said that Oracle co-founder Larry Ellison, a friend of Tesla CEO Elon Musk, will no longer run for Tesla’s board when his term expires at this year’s shareholder meeting. member.
Ellison was one of the top investors who pledged to fund Musk’s $44 billion acquisition of social media company Twitter Inc.
Shares of Austin, Texas-based Tesla rose more than 1% in extended trading on Friday. They have fallen nearly 40% since Musk unveiled his stake in Twitter in early April, hurt in part by a strict lockdown in Shanghai that has affected Tesla’s production.
Shareholders will vote on Tesla’s proposed stock split on Aug. 4. If approved, it would be the company’s first such action after a five-for-one split in August 2020.
Tesla said the split would enable its employees to “have more flexibility in managing their equity” and make its stock “more accessible to our retail shareholders.”
Alphabet Inc (GOOGL.O), Apple Inc (AAPL.O)and Amazon.com Inc(AMZN.O)have also recently split their shares.
While a spinoff has no impact on the company’s fundamentals, it could boost the stock price by making it easier for a wider group of investors to own the stock.
Tesla will also ask shareholders to vote to reduce the term of its board of directors from three years to two years. If approved, the terms will be staggered over two years.