Elon Musk’s gesture betrays Tesla’s plans: all shareholders affected

Tesla is going through a rather strange period, after a few defeats in the industry. The most important is the value of the shares, which in just six months have depreciated by 31% or about $ 300. In this context, Elon Musk’s actions should not come as a major surprise.

Although Tesla shares have almost halved in the last two months, now worth $ 664, while on April 4 you bought them for $ 1,145, Elon Musk is thinking of making them even more affordable. For this reason, the most valuable car manufacturer has come up with a proposal to divide its shares by 3 to 1. In other words, they will multiply three times and, implicitly, their purchase value will decrease by three. ori.

What’s going on at the top of Tesla

In a recent Tesla statement, confirmed by Reuters, the carmaker’s officials confirmed that Larry Ellison, co-founder of Oracle Corp, will no longer be on the board of directors of the company led by Elon Musk. Ellison has decided not to run for re-election to the board of directors since the current term expires at this year’s shareholders’ meeting.

As a reference, Larry Ellison is also one of Elon Musk’s close friends, promising him funding for his $ 44 billion acquisition of Twitter a few months ago.

When the news of the shares were divided into three, their value on the stock exchange increased by about 1% in 24 hours, but the current value is far from the peak in April. Then they went down to Elon Musk’s Twitter ad. The bad quarantine in Shanghai, which significantly affected the Tesla plant in the region, did not help either.

The division of shares cannot take place without the vote of Tesla’s main shareholders, and this will happen at the next meeting of the majority shareholders, on August 4. This is the second time that the carmaker has split its shares after August 2020. At the time, it was a five-to-one split.