Tesla goes for stock split so it can pay a stock dividend, shares gain

Tesla will seek investor approval to increase its number of shares to enable a stock split in the form of a dividend, the electric-car maker said on Monday, sending its shares up 5 per cent before the bell.

The proposal has been approved by its board and the shareholders will vote on it at the annual meeting. The stock split, if approved, would be the latest after a five-for-one split in August 2020.

Telsa, which debuted at $17 per share in 2010, is currently trading above $1,000. Since the stock split in 2020, they have surged 128 per cent, boosting the market capitalisation to above $1 trillion.

Tesla's electric cars are among the most sold and it has delivered nearly a million cars annually, while ramping up production by setting up new factories in the United States and Europe.

Tesla shares surged as much as 5.4 per cent to $1,065 before the start of regular trading.