Tesla stock closed on Friday at $696.69 a share; that night, Tesla proposed a three-for-one split of its stock. For reference, the stock price has gone up 43% since the last stock split in 2020.
The Tesla stock split gives shareholders two additional shares of the stock. The company hopes that this may help maximize stockholder value.
While this stock split has been marketed towards the everyday people on Robinhood, the people benefiting will most likely be high-paying investors who want a bigger share in the company. Smaller investors may also feel as though they can finally afford the stock. Conveniently Larry Ellison also stepped down from the board this weekend. Tesla shareholders will vote on this proposal at the new Tesla factory, on August 4, 2022.