Tesla plans a 3-for-1 stock split, for a regulatory filing of the company's report with the SEC late on June 10, 2022, but something needs to happen first before such a move.

Reasons for a Tesla stock split

The electric car maker made the move for two reasons, the US Securities and Exchange Commission.

The company says the number one reason for the stock split is: "The click that the employee stock split will help reset the market price of the common stock makes it more flexible in managing equity, all of which, in our opinion, help, may help increase the value of the postal rights."

The company landed, Hill to file, ha ha ha flying: "Unlike other manufacturers, we give each option royalties."

In addition, the second reason: "Participation in commercial real estate and contribute to investment in commercial real estate"

The electric-car maker has done just that, with its shares improving 43.5% since then.

Before the Tesla stock split

But before the board of directors approves a stock split, stock, stock, stock, stock, musk, its chief executive, to ask permission from the current owners to increase the number of available stock available.

Tesla said in the filing: The current number of authorized shares of our common stock is 2,000,000,000, which is not enough for a stock split.”

Scheme of the proxy statement: “The Authorized Shares Amendment increases the number of authorized shares of Tesla common stock from 2,000,000,000 shares to 6,000,000,000 shares.” As of June 6, 2022, we have 1,036,390,569 shares of unsettled common stock.

A good step for the company's future

A stock split doesn't change the core value of the company, they simply split it over a larger number of shares. However, it is generally seen as a positive move that suggests optimism on the part of management about the company's future prospects.

Tesla plans to hold its annual shareholder meeting on Thursday, August 4, 2022, to allow shareholders to vote on the authorized share increase.