The three-for-one stock split will begin trading on August 25 according to Tesla

Following the approval of the proposal by Tesla Inc. shareholders at its annual meeting, the electric vehicle manufacturer said on Friday that trading in its three-for-one split shares will begin on August 25.

At the EV manufacturer's annual meeting on Thursday, shareholders approved most board recommendations, including re-electing directors and accepting a stock split, while rejecting suggestions centred on the environment and governance.

After selling millions of shares last year, CEO Elon Musk now controls 15.6% of Tesla, according to Refinitiv statistics.

According to the corporation, a dividend of two extra shares per share held will be paid to stockholders of record on August 17 and will be disbursed after the market closes on August 24.

The latest share split occurs two years after a five-for-one split helped lower the high-flying stock's price so that average investors could afford it.

Although a split has no impact on a company's fundamentals, it may increase the share price by enabling a wider spectrum of investors to purchase the stock.

After the 2020 stock split, Tesla shares, which began trading at $17 a share in 2010, increased to more than $1,200 late in the year, pushing the company's market worth above $1 trillion.

The price of Tesla stock, which fell 6.6% on Friday, has fallen approximately 18% so far this year.

With 339.2 million votes in favour and roughly 319 million against it, shareholders barely accepted an advisory motion on Thursday that would expand the authority of investors to select directors.

A shareholder proposal requesting Tesla to annually report its efforts to avoid sexual harassment and racial discrimination was defeated by 350.7 million votes to 310 million.