AP

Tesla proposes a 3-for-1 stock split; Ellison to leave Board

Jun 10, 2022, 4:14 AM | Updated: 5:12 pm

FILE -This April 22, 2021, photo shows a Tesla Supercharger station in Buford, Ga. Tesla proposed a...

FILE -This April 22, 2021, photo shows a Tesla Supercharger station in Buford, Ga. Tesla proposed a three-for-one split of its stock on Friday, June 10, 2022, a move that will make a single share of the electric car maker more accessible to investors but not affect the company's overall market value.(AP Photo/Chris Carlson, File)

(AP Photo/Chris Carlson, File)

NEW YORK (AP) — Tesla proposed a three-for-one split of its stock on Friday, a move that will make a single share of the electric car maker more accessible to investors but not affect the company’s overall market value.

Tesla Inc. made the announcement in its annual proxy statement, which also said Oracle co-founder Larry Ellison will not be standing for re-election to the company’s board.

The company said in late March that was planning to split its stock for the second time in two years. At that time the shares were trading at over $1,000 each.

But Tesla’s stock has fallen about 39% since early April, shortly after its CEO Elon Musk started raising the idea of buying Twitter. Shares in the company headquartered in Austin, Texas, closed Friday at $696.69.

Share splits are used by companies when their stock price gets too high for retail investors to buy individual shares, or when a company wants more shares to exist in the marketplace to make the stock more liquid to trade.

In its statement, Tesla said it was trying to accomplish both of these goals: giving its employees greater quantities of shares as well as making the stock more accessible to retail investors.

Musk is planning on using his Tesla shares as collateral for buying Twitter, as well as potentially selling down his stake in the company to help with financing.

Tesla shareholders will vote on the share split at the company’s annual meeting on Aug. 4.

The company, meanwhile, said Ellison, a major Tesla investor and friend of Musk’s, will be stepping down from its board. Ellison was one of two independent members named to the board in late 2018 as part of a settlement with the Securities and Exchange Commission, which had demanded more oversight of Musk.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

Juanita Beach Kirkland...

Kathy McCormack and Nick Perry, The Associated Press

‘Tis the season for swimming and bacteria alerts in lakes, rivers

With summer about to start, many people flocking to their favorite swimming holes may also want to read up on bacteria warnings.

19 hours ago

Image: Members of the Makah Indian tribe paddle away from the rising sun as they head from Neah Bay...

Associated Press

Washington’s Makah Tribe clears major hurdle toward resuming traditional whale hunts

The U.S. granted the Makah Indian Tribe a long-sought waiver that helps clear the way for its first sanctioned whale hunts since 1999.

2 days ago

jerry west...

Tim Reynolds, The Associated Press

Jerry West, a 3-time Hall of Fame selection and the NBA logo, dies at 86

Jerry West, a three-time Basketball Hall of Fame inductee whose silhouette is considered to be the basis of the NBA logo, died Wednesday morning.

3 days ago

Photo: Construction vehicles are parked outside of the Station U & O building on Tuesday, June 11, ...

Haleluya Hadero, The Associated Press

Amazon adds $1.4B to affordable housing fund for regions where it has corporate offices

Amazon is adding $1.4B to a fund for building more affordable housing in regions where the company has major corporate offices.

4 days ago

hunter biden...

Randall Chase and the Associated Press

Hunter Biden convicted of all 3 felony charges in federal gun trial

Hunter Biden has been convicted of all three felony charges related to the purchase of a revolver in 2018, but no sentencing date was set.

4 days ago

Photo: A Bremerton man who made 20 "swatting" calls around the U.S. and in Canada, prompting real e...

Associated Press

Bremerton man sentenced for 20 ‘swatting’ calls of false threats in US, Canada

A Bremerton man who made 20 "swatting" calls around the U.S. and in Canada, prompting real emergency responses, has been sentenced.

5 days ago

Tesla proposes a 3-for-1 stock split; Ellison to leave Board