Tesla plans to issue a stock dividend by splitting its shares; stock price increases.

• The SEC filing announced that the electric car manufacturer will request an increase in the number of authorized shares of common stock at its annual shareholders meeting in order to execute a stock split of the company's common stock in the form of a stock dividend.
• Since the 5-for-1 stock split in August 2020, Tesla's shares have more than doubled.

According to a Monday filing, the company intends to split its stock in order to pay a stock dividend to its shareholders.

The electric car maker will request an increase in authorized shares of common stock at its annual shareholders meeting to facilitate a stock split in the form of a stock dividend.

Instead of cash, a stock dividend is a dividend paid to shareholders in the form of additional company shares. Although these dividends do not affect the value of a company, they dilute its share price.

Tesla will issue a one-time stock dividend of five shares for every one share owned by investors.

At approximately $1,075, Tesla's shares experienced a rise of over 6%.

Since the 5-for-1 stock split in August 2020, the shares of the company have more than doubled.

Despite Tesla's stock experiencing a 4.4% decline in 2022 through Friday's close, it has still seen significant growth in the past two years, with a 49.8% increase in 2021 and a 743.4% surge in 2020. Additionally, the shares have risen in each of the last five years.

According to a Bloomberg News report, Tesla will pause production at its Shanghai factory because of a Covid-19 lockdown in the city.