Tesla wants to split its stock so it can pay a stock dividend to shareholders, according to a filing Monday.
The Securities and Exchange Commission filing said the electric car maker will ask at its annual shareholders meeting “for an increase in the number of authorized shares of common stock … in order to enable a stock split of the Company’s common stock in the form of a stock dividend.”
A stock dividend is a dividend paid to shareholders in the form of additional company shares instead of cash. These dividends do not affect the value of a company, but they dilute its share price.
In other words, if there is a 6-for-1 split, investors will get a stock dividend of five shares for every…