Sign up now for FREE unlimited access to Reuters.com Register March 28 (Reuters) – Tesla (TSLA.O) on Monday announced it would seek shareholder approval to increase its shareholding capacity to allow for a split, adding to the recent wave of megacap companies splitting their shares. in an effort to attract more investors. Tesla said in a statement that it would vote in the forthcoming annual general meeting of shareholders to increase the number of approved shares in order to allow the shares to split. read more A split by Tesla, which would have been approved by its board of directors, would be the second by the electric car company by 2020 and would follow the splitting announcements by other major US companies in recent years. Sign up now for FREE unlimited access to Reuters.com Register Megacap stock splits Companies are splitting their shares to make their share prices look less expensive and attract more investors. However, the separation of a share does not affect its underlying fundamentals. However, BofA Global Research said in a recent survey note that stock splits are “historically upward” for start-ups, with their shares averaging 25% a year later compared to 9% for the market as a whole. Tesla’s stock rose 8% on Monday, adding more than $ 100 billion to its market capitalization. Reuters Graphics Tesla was the stock with the most transactions between Fidelity’s online clients on Monday, with buying and selling orders splitting almost evenly, suggesting that small investors are wary of the company. Reuters Graphics Since joining the S&P 500 in December 2020, Tesla has been one of its heaviest weighted stocks, currently accounting for more than 2% of the index. It has gained about 300% since announcing its first stock split in August 2020. Other S&P 500 high-nominal shares that analysts say could signal a future split include Chipotle Mexican Grill (CMG.N), up 0.1% on Monday to $ 1,558, and Booking Holdings (BKNG.O) are trading almost flat at around $ 2,247. Reuters Graphics Sign up now for FREE unlimited access to Reuters.com Register Report by Noel Randewich. Edited by Cynthia Osterman Our role models: The Thomson Reuters Trust Principles.
