Tesla (TSLA:NASDAQ) shareholders have backed a move for its stock to be split for the second time in two years. The move should make investing in the company more affordable for small investors.

The three-for-one division will see shareholders receive two additional shares for each one owned at the market close on 24 August. Tesla shares will trade at the split-adjusted price when the stock market opens on 25 August.

If the split were to happen at the time of writing (9 Aug), it would see each share worth approximately $870 become three worth
$290 apiece.

Tesla, already the world’s most valuable carmaker, performed a five-for-one stock split two years ago, and its share price has roughly doubled since then. Many people could not invest as the high price per share was beyond their means.

Its share price has come under pressure this year as investors turned their backs on higher risk assets. Some investors have questioned whether Tesla will maintain its electric vehicle lead in the face of competition such as Chinese pair BYD (002594:SHE) and NIO (NIO:NYSE). EV sales in China topped 3.3 million vehicles in 2021, dwarfing the 608,000 sold in the US.

Leveraged short interest on Tesla has escalated, with GraniteShares 3x Short Tesla Daily ETP (3STS) seeing 17.7 million securities traded on the London Stock Exchange on 1 August, a high for the year. Short bets will be closed the night before Tesla’s stock split and reopened at the adjusted price the following day.

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