Major electric car maker Tesla Inc. has proposed to hike its shares to make way for a stock split through dividends, according to a Reuters report.
The company’s board has already given the thumbs up for the measure, with shareholders set to vote on the matter during the annual meeting. This would be in line with the five-for-one split in August 2020.
Analysts believe the stock split could extend the bubble in Tesla’s stock, with some agreeing with the timing as companies usually push through with stock splits ahead of positive announcements.
The company has delivered close to a million units annually, with expansions in its production through establishing new factories in Austin and Berlin to compete with legacy firms and startup companies.
The company will temporarily close down its Shanghai factory for four days, due to the area’s lockdown amid the resurgence of COVID-19 cases.