To facilitate a stock split in the form of a dividend, Tesla will seek investor approval to raise its share count.
The board has approved the idea, and the annual meeting will vote on it. If approved, the stock split would be the second in 2020, following a five-for-one stock split in August.
Alphabet Inc., Amazon.com Inc., and Apple Inc. have recently split their shares to make them more inexpensive.
Ten years after its $17 IPO, Telsa trades at $1,000. The company’s market capitalization has risen to over $1 trillion, making it the largest U.S. carmaker by that measure.
Tesla’s electric cars are among the most popular, and the company is expanding production by opening new factories in the US and Europe.
However, traditional automakers like Ford and GM, as well as startups like Rivian, are entering the market, providing buyers more options.
The equity dividend is subject to final approval.