Tesla and SpaceX CEO, Elon Musk remains the richest person in the world despite unprecedented buying pressure on the world’s most valuable car brand. After posting daily gains of nearly $19 billion, the billionaire has a net worth of $275 billion.
Elon Musk’s net worth is equivalent to 143 million troy ounces of gold or 2.51 billion barrels of crude oil. Regulatory filings from February 2021 indicate Musk owns about 17% of Tesla.
As investors position on Tesla’s stock split, Tesla’s shares were up more than 8% at the end of the Monday trading session in New York at $1,091
According to a filing Monday, Tesla wants to split its stock in order to pay a stock dividend to investors.
The United States’ Securities and Exchange Commission filing states that the electric car maker plans to request an increase in the number of shares of common stock authorized at its annual shareholders’ meeting, “to facilitate a stock split of the company’s common stock.”
Dividends paid to shareholders as additional shares of a company are called stock dividends. They dilute a company’s share price but do not affect the value of the company.
In other words, if Tesla splits into six shares for one, investors will receive a five-for-one dividend. This will, however, only happen once.
The company split its stock five-to-one in September 2020, one day after it announced that it planned to sell shares worth up to $5 billion.
Three months later, Tesla announced that it would hold another stock offering, raising an additional $5 billion.