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Tesla will seek shareholder approval for a second stock split at its annual general meeting: Details Tesla will convene its annual shareholder meeting in Austin, Texas, on Thursday, with the world’s most valuable automaker’s plan for a second stock split in as many years expected to take centre stage. On the agenda are also shareholder suggestions for corporate governance-related matters, such as approving the ability of employees to organise a union and requesting that the corporation report annually on its efforts to avoid racial discrimination and sexual harassment. Follow For More Updates at Worldrapiddnews.com

Elon Musk, CEO of Tesla, and Twitter are engaged in a legal struggle after the world’s richest man announced last month that he was abandoning a $44 billion (about Rs. 3,48,300 crore) bid to acquire the firm.

According to Refinitiv data, Musk owns 15.6% of Tesla after selling millions of shares over the course of the last year. Two years after a five-for-one split helped bring the price of the skyrocketing stock into reach of ordinary investors, Tesla revealed in March its intention to seek investor approval to raise the number of shares outstanding. Now, Tesla proposes a three-for-one split.

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After the 2020 stock split, Tesla shares, which began in 2010 at $17 (about Rs. 1,300) each, climbed to over $1,200 (approximately Rs. 95,000) late in 2018, bringing the company’s market valuation past $1 trillion (roughly Rs. 79,16,233 crore).

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While a stock split has no effect on a company’s fundamentals, it can boost the share price by making the shares more accessible to a broader spectrum of investors. In recent times, IT giants Alphabet, Amazon, and Apple have also announced stock splits.

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In addition, Tesla shareholders will vote on the board’s proposals to lower the tenure of its directors from three to two years and to re-elect Ira Ehrenpreis and Kathleen Wilson-Thompson to their positions. Institutional Shareholder Services (ISS) advised Tesla shareholders against voting for the two nominees last month.

At the meeting, shareholders will vote on a motion asking the board to allow significant and long-term owners or groups with at least 3 percent of the firm’s shares to place competing director candidates on the company ballot.

Tesla stated in its proxy statement that this may present an opportunity for special interests seeking just short-term gains, as opposed to the company’s long-term goals. In a board proposal, the business requested shareholder approval for the elimination of certain supermajority voting restrictions, claiming that doing so would “provide shareholders a stronger voice.” Both Glass Lewis and ISS advised shareholders to vote in favour of both proposals. The annual meeting will begin at 5.30 p.m. ET (3am IST on Friday).

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