Tesla investors and supporters will have to wait, whether they are patient or not.
Many of them had May 2 circled on their calendars as the deadline for the high-end electric vehicle maker to submit its proxy statement to the Securities and Exchange Commission.
The corporation, like the rest of the public companies, had 120 days to submit the statement after the fiscal year ended on December 31. The story is especially timely now, given the Austin EV group announced a stock split last month.
The 120-day period began on April 30, a Saturday, so investors and Musk’s supporters had to wait until May 2 to review the document.
They’ll just have to wait a bit longer. The firm has just stated that it will require more time to compile the document.
In a filing with the Securities and Exchange Commission on May 2, the firm stated, “We presently expect our definitive proxy statement for the 2022 annual meeting of stockholders to be filed later than the 120th day after the end of the previous fiscal year.”
It didn’t disclose any other details, such as when the proxy statement would be filed. The proposed stock split’s details are yet unknown to investors.
In March, Tesla recommended a separation. “At this year’s annual meeting, Tesla will ask shareholders to vote to authorise extra shares in order to facilitate a stock split,” the company announced on Twitter on March 28.
Investors rested their expectations on the proxy statement because the corporation did not provide details. Some shareholders were concerned that a split would dilute their ownership. That is not the case. A stock split increases the number of outstanding shares while lowering the price proportionately. It has no effect on the market capitalization of the firm or the value of any individual shareholder’s investment. It just lowers the cost of purchasing the shares.
Tesla said its 2022 shareholder meeting will be held on August 4th in Austin, TX, many hours after the initial version of this article was published. It will be a face-to-face meeting.
The shareholder meeting was held in October of last year. The group would be allowed to carry out the stock split if shareholders voted in favour.
The corporation intends to attract more investors and boost the liquidity (trading activity) of its shares by making the share price more accessible. According to experts, stock splits can also cause stock price increases when ordinary traders pile in.
At the time of writing, Tesla stock was trading at $866. It’s almost a third of the way down from its 52-week high of $1,243 reached in early November.
Tesla announced a 5-for-1 split in August 2020, giving each Tesla shareholder five shares for each one they possessed.
In recent months, there have been a slew of stock split announcements. Google, Amazon, and GameStop, among others, have announced that they will divide their stock this year.