Electric vehicle manufacturer Tesla Inc. (TSLA) wants to split its stock to pay shareholders a dividend, a filing with the Securities and Exchange Commission said. The EV company plans to ask stockholders to approve the split at its upcoming 2022 annual shareholder meeting, according to the filing.
Tesla’s stock price rose more than 6% to $1,072.5 per share during premarket trading. The company previously enacted a 5-for-1 stock split in August 2020.
Tesla’s announcement follows Amazon revealing earlier this month that it would split its stock 20-for-1. Last month, Google parent Alphabet announced a 20-for-1 stock split. It also comes as the company is temporarily halting production at its factory in Shanghai a partial city lockdown to contain a COVID-19 outbreak.
CNBC is reporting that Tesla’s stock has struggled this year, slipping 4.4% for 2022 through Friday’s close. However, shares for the company have risen every year for the last five years.
Tesla is the top holding in the ARK Autonomous Technology & Robotics ETF (ARKQ ), which allocates 10.54% of its weight to Elon Musk’s company. ARKQ is an actively managed fund that invests in autonomous technology and robotics companies relevant to the theme of disruptive innovation.
Companies within ARKQ are focused on and expected to substantially benefit from the development of new products or services, technological improvements, and advancements in scientific research related to energy, automation & manufacturing, materials, artificial intelligence, and transportation. ARKQ has an expense ratio of 0.75%.
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