Austin, Tesla said on Friday trading in its three-for-one split shares will start on Aug. 25, after the electric vehicle maker's shareholders approved the proposal during its annual meeting.

Shareholders of the EV maker voted for board recommendations on most issues at the company's annual meeting on Thursday, including re-electing directors, approving a stock split, while rejecting proposals focused on environment and governance, Reuters reports.

Chief Executive Elon Musk owns 15.6% of Tesla, according to Refinitiv data, after selling millions of shares last year.

Each stockholder of record on Aug. 17 will get a dividend of two additional shares for each share held, to be distributed after close of trading on Aug. 24, the company said.

The new share split comes two years after a five-for-one split helped bring down the price of the high-flying stock within the reach of ordinary investors.

While a split does not affect a company's fundamentals, it could buoy the share price by making it easier for a wider range of investors to own the stock.

Tesla shares, which debuted at $17 apiece in 2010, rose to more than $1,200 late year after the 2020 stock split, taking the company's market capitalization above $1 trillion.

Tesla shares, which ended 6.6% lower on Friday, are down about 18% this year.

At the Thursday meeting, shareholders narrowly approved an advisory proposal that would increase investors' ability to nominate directors, with 339.2 million votes for the proposal and nearly 319 million votes against it.

Shareholder proposal asking Tesla to report its efforts in preventing racial discrimination and sexual harassment annually was rejected, with 350.7 million votes against it versus 310 million votes for the proposal.

Source: Bahrain News Agency