Just hours after it was reported that Tesla would be suspending production at its Shanghai factory for "at least four days", shareholders conveniently have a new piece of news to swoon over after Tesla announced Monday morning it was considering a stock split.
The company will "ask shareholders to vote at this year’s annual meeting to authorize additional shares in order to enable a stock split," Tesla Tweeted on Monday morning.
Tesla will ask shareholders to vote at this year’s annual meeting to authorize additional shares in order to enable a stock split.— Tesla (@Tesla) March 28, 2022
Despite the fact that increasing the share count does little to nothing to add value to the underlying business, Tesla stock shot up by 5% after the news was announced, following a trend it set the last time the company split its stock and immediately saw it rise.
Just moments ago we reported that Tesla stock had its best 7 day stretch since 2021, despite what appears to be mounting tensions between CEO Elon Musk and the Securities and Exchange Commission.
The run up in shares of Tesla came amidst a broader market rally and despite the fact that CEO Elon Musk faces mounting tensions with regulators. As we've reported over the last month, Musk is jousting with the SEC about whether or not he should still be beholden to his 2018 settlement agreement with the agency which required a "Twitter sitter" to review all of Musk's online communications.
The U.S. Securities and Exchange Commission has said Musk has not met the "high burden" necessary to throw out the 2018 consent decree he is under, according to Reuters. Musk found compliance "less convenient than he had hoped," the SEC argued, adding that "when it comes to civil settlements, a deal is a deal, absent far more compelling circumstances than are here presented."