has tesla ever split their stock — two splits explained

Short answer: yes. This article explains whether has tesla ever split their stock, detailing the 2020 five-for-one and 2022 three-for-one splits, timeline, mechanics, shareholder effects, tax/accou...

2026-01-27 09:50:00

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Tesla stock splits

Has tesla ever split their stock? Yes — Tesla, Inc. completed two stock splits in recent years: a five-for-one split in 2020 and a three-for-one split in 2022. This guide explains what those splits were, why Tesla did them, exact announcement/record/distribution/trading dates, how splits are implemented and reflected in brokerage accounts and historical price data, and what the splits meant for shareholders, employees, and markets. Read on to get clear dates, direct quotes from Tesla press releases, and reliable sources for split-adjusted prices and share counts.

As of Aug 11, 2020 and Aug 5, 2022, Tesla publicly announced its respective stock splits in company press releases. For context on shareholder approvals and market coverage, see Reuters and AP reporting from June–August 2022.

Background and purpose of stock splits

A stock split is a corporate action that increases the number of outstanding shares by issuing more shares to existing shareholders in proportion to their holdings. The total market capitalization of the company and each shareholder's proportional ownership remain unchanged immediately after a split. Instead, the nominal price per share is reduced by the split factor, making individual shares more affordable in nominal terms.

Companies commonly cite several reasons for undertaking stock splits:

Accessibility: Lower nominal share prices can make shares more attainable for retail investors and employees who buy fractional amounts or whole shares.
Liquidity: Increasing the number of shares can improve trading liquidity and reduce bid-ask spreads.
Equity compensation flexibility: A lower per-share price allows companies to grant finer-grained stock awards or options to employees.
Psychological and marketing effects: Some companies use splits to signal confidence or to create retail interest, although a split itself does not change intrinsic value.

Tesla’s stated motivations echo these common reasons. In its 2020 press release titled "Tesla Announces a Five-for-One Stock Split," Tesla said the split was intended to make ownership more accessible to employees and retail investors. In the 2022 release, titled "Tesla Announces a Three-for-One Stock Split," Tesla again noted the benefits of making shares more accessible and providing flexibility for equity compensation.

Timeline of Tesla stock splits

Below is a concise, sourced timeline for each Tesla split. Exact announcement, record, distribution, and first trading dates are included.

2020 — Five-for-one split

Announcement date: Aug 11, 2020 (Tesla press release titled "Tesla Announces a Five-for-One Stock Split")
Shareholder record date: Aug 21, 2020 (as stated in the press release)
Distribution implementation: After the market close on Aug 28, 2020, and shares were distributed to shareholders of record
First trading on a split-adjusted basis: Aug 31, 2020 (the market reopened with shares trading at approximately one-fifth of the pre-split price)

Mechanics: Each outstanding Tesla share held before the split became five shares after the split (a 5-for-1 split). The per-share price was adjusted downward by a factor of five, while total market capitalization remained unchanged on a split-adjusted basis.

Direct quote (Tesla press release, Aug 11, 2020): "The split is intended to make Tesla stock more accessible to employees and retail investors."

2022 — Three-for-one split

Announcement / board approval: Aug 5, 2022 (Tesla press release titled "Tesla Announces a Three-for-One Stock Split")
Shareholder record date: Aug 17, 2022 (as communicated by Tesla)
Distribution implementation: After the market close on Aug 24, 2022
First trading on a split-adjusted basis: Aug 25, 2022

Mechanics: Each outstanding Tesla share immediately prior to the distribution became three shares after the split (a 3-for-1 split). The per-share price was adjusted downward by a factor of three; total market cap remained the same at the moment of the split.

Direct quote (Tesla press release, Aug 5, 2022): "The split will make Tesla stock more accessible for employees and retail investors and provide flexibility for equity compensation."

Cumulative effect

Taken together, the five-for-one split in 2020 followed by the three-for-one split in 2022 mean that one pre-2020 Tesla share is equivalent to 5 × 3 = 15 Tesla shares after the 2022 split. In other words, a single share purchased before the 2020 split would have been converted into 15 shares by the end of August 2022. Outstanding share counts increased by the same cumulative factor in nominal number of shares; however, market capitalization remained determined by share price × number of shares, and thus was unchanged by the split events themselves on a split-adjusted basis.

Mechanics and implementation

How are stock splits executed in practice? The mechanical steps are consistent across most U.S.-listed companies and were followed by Tesla for both splits:

Board approval and announcement: The company’s board of directors approves a split and issues a public press release giving the split ratio (e.g., 5-for-1 or 3-for-1), key dates (record and distribution), and purpose. Tesla issued such announcements on Aug 11, 2020 and Aug 5, 2022.
Record date: The record date is the date on which shareholders of record are identified; those shareholders are entitled to receive the additional shares. For Tesla, the record dates were Aug 21, 2020 (5-for-1) and Aug 17, 2022 (3-for-1).
Distribution date (or distribution after market close): On the specified distribution date—typically after the market close—brokers update accounts to reflect the additional shares. For Tesla, distributions were processed after the close on Aug 28, 2020 (5-for-1) and Aug 24, 2022 (3-for-1).
First day of split-adjusted trading: The next trading day reflects the split-adjusted share count and price. Tesla shares traded on a split-adjusted basis starting Aug 31, 2020 and Aug 25, 2022 for the two splits, respectively.

How brokerages and data providers reflect splits:

Brokerage accounts: Most custodial brokerage platforms automatically credit fractional or whole additional shares to the accounts of record holders according to the split ratio. If an investor holds fractional shares and the split creates fractional post-split balances, brokers have procedures (cash-in-lieu payments or fractional share crediting) depending on their policies.
Historical price adjustment: Financial data providers adjust historical prices and per-share metrics (earnings per share, price-to-earnings, etc.) to reflect splits so that charts and time-series data are comparable across time. That is why historical Tesla price charts show split-adjusted prices rather than the raw pre-split numbers.

Effects on shareholders and markets

Legal and ownership consequences

No change to proportional ownership: A stock split does not change a shareholder’s proportional ownership percentage in the company. If you owned 1% of Tesla before a split, you still own 1% after, but your shares are multiplied by the split factor and the per-share price adjusted accordingly.
No immediate change in total market capitalization: Market cap equals share price times total outstanding shares. Because price and shares change proportionally due to the split, market cap is unchanged in a purely mechanical sense at the moment of the split.

Short-term market reactions observed around Tesla’s splits

While splits are neutral on intrinsic value, market behavior can and often does change in the near term:

Retail interest and trading volume: Lower nominal prices can attract more retail buyers who prefer to purchase whole shares or who view the lower numerical price as more accessible. After the 2020 split, many market observers and news outlets noted elevated retail activity and strong volume in Tesla trading around the split date. As of Aug 31, 2020, markets reopened with split-adjusted prices and notable trading volume.
Volatility: Increased participation and speculative activity may produce heightened volatility in the short term. Analysts covering Tesla noted swings around split events and heightened media attention.
No guaranteed long-term performance boost: Historical studies show no consistent long-term outperformance attributable solely to splits. The long-term price path depends on the company’s fundamentals and market conditions.

As of June 10, 2022, Reuters reported on shareholder votes and governance items related to Tesla that preceded the 2022 split announcement; at that time market commentary discussed the possibility of a split and potential effects on retail demand. AP News (June 10, 2022) similarly covered shareholder actions and market context prior to Tesla’s Aug 2022 split announcement.

Impact on employee compensation and corporate governance

Stock splits can be particularly useful when companies rely heavily on equity-based compensation:

Finer-grained equity grants: A lower nominal share price gives employers the ability to grant smaller numbers of whole shares or to assign option numbers that are simpler for employees to understand and exercise.
Exercise and tax practicability: Where employees are awarded options or restricted stock units, a lower per-share nominal price can make exercises or sales more manageable from a cash-flow perspective, though tax events depend on the type of award and jurisdiction.
Governance and dilution considerations: A split itself is not a dilution of ownership percentage; dilution results from issuing new shares, not splitting existing ones. However, companies often accompany splits with increases in authorized shares or other governance actions; shareholders should review proxy materials and SEC filings to confirm whether other authorizations were requested. For Tesla, shareholder approvals in mid-2022 addressed related governance matters that enabled the split and future equity actions.

Tesla specifically referenced employee accessibility and equity compensation flexibility as motivations in both its 2020 and 2022 announcements.

Tax and accounting considerations

U.S. tax treatment

Generally non-taxable: In the United States, ordinary stock splits (where shareholders receive additional shares in proportion to holdings) are typically not taxable events at the time of the split. Holders do not recognize income simply because of a stock split. Instead, the cost basis of the original holding is allocated across the post-split number of shares.
Basis allocation: After a split, the per-share tax basis is generally reduced proportionally to reflect the increased share count. When shares are later sold, gain or loss calculations use the adjusted basis.

Accounting and reporting

Per-share metrics adjusted: Companies and data providers adjust per-share financial metrics such as earnings per share (EPS) to reflect splits so that comparisons over time remain meaningful.
SEC filings and disclosures: Public companies disclose stock splits, including dates and ratios, in press releases and in filings with the U.S. Securities and Exchange Commission (SEC). Investors seeking precise basis and tax treatment should consult tax professionals and company filings for authoritative guidance.

Historical context and comparisons

Stock splits are a longstanding corporate practice and have been particularly visible among large-cap technology and consumer companies in recent years. Examples of well-known companies that have split shares in the 21st century include Apple, NVIDIA, Alphabet, and Amazon (each at different times and with different ratios). These splits share the common intent of improving accessibility and flexibility for shareholders and employees.

Tesla’s 2020 and 2022 splits occurred in a broader market environment where several large-cap technology firms undertook splits to lower nominal per-share prices and encourage stock ownership among retail investors.

Market data and adjusted historical prices

Where to find split-adjusted historical prices and share counts:

Investing and market-data providers: Sites such as Investing.com and Macrotrends provide historical, split-adjusted price charts and timelines. These services adjust older price series to account for splits so that long-term charts display comparable price movements.
Corporate filings and investor relations pages: Tesla’s investor relations site and its press releases list the official split ratios and key dates used for reconciliation and record-keeping.
Companies and market cap trackers: Aggregators that list outstanding share counts and market capitalization historically will note split events and show split-adjusted outstanding shares.

How cumulative splits are displayed: In charts and time-series datasets, cumulative split factors are applied so that a pre-2020 price is typically shown divided by 15 when viewed on a post-2022 split-adjusted chart, reflecting the 5×3 cumulative split factor.

Controversies and criticisms

Common critiques of stock splits include:

No intrinsic value creation: Critics point out that splits do not change a company’s fundamentals or intrinsic value; they simply change the nominal share count and price.
Potential to encourage retail speculation: Lower nominal prices can encourage inexperienced retail investors to buy whole shares based on price heuristics rather than fundamentals.
Administrative complexity: Splits require corporate and brokerage administrative work, including updating records, adjusting basis allocations, and potentially paying cash in lieu for fractional shares.

In media coverage and investor commentary, these criticisms were part of discussions around Tesla’s splits. Observers noted strong retail interest and intense media coverage surrounding the 2020 split; others cautioned that splits could amplify short-term speculative flows but do not replace the need for careful analysis of company fundamentals.

Practical examples and data points (split-related, sourced)

Exact press releases: Tesla’s press releases announced the 5-for-1 split on Aug 11, 2020 and the 3-for-1 split on Aug 5, 2022. These official notices included record and distribution dates used by brokerages to determine entitlements.
Governance context: As of June 10, 2022, Reuters reported on shareholder approvals and governance votes that related to Tesla’s ability to undertake the 2022 split, and AP News reported on the same shareholder meeting outcomes on that date.
Market reaction: Financial news coverage around the 2020 split described strong retail participation and elevated volume when split-adjusted trading resumed on Aug 31, 2020. Similarly, commentary around Aug 25, 2022 noted pronounced market interest following the 3-for-1 split distribution.

(Reporting dates and sources: As of June 10, 2022, Reuters and AP News covered Tesla shareholder actions. Tesla’s official press releases were dated Aug 11, 2020 and Aug 5, 2022 for the two splits.)

How to verify split-adjusted history and your holdings

Check your brokerage statement: After a split, your account statement should show the adjusted share count and per-share price. If you have questions about fractional shares or cash-in-lieu payments, contact your broker’s support team.
Review corporate announcements: Tesla’s investor relations site publishes press releases and notices that list record and distribution dates needed to reconcile entitlements.
Use reputable market-data providers: For historical price series and charts that incorporate splits, consult established data providers that clearly state they adjust prices for stock splits and dividends.

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References

Tesla press release, "Tesla Announces a Five-for-One Stock Split," Aug 11, 2020. (official company announcement of the 5-for-1 split, including record and distribution dates)
Tesla press release, "Tesla Announces a Three-for-One Stock Split," Aug 5, 2022. (official company announcement of the 3-for-1 split, including record and distribution dates)
Reuters, reporting on Tesla shareholder matters and market context, Jun 10, 2022. (coverage of shareholder approvals preceding the 2022 split)
AP News, coverage of Tesla shareholder meeting and related items, Jun 10, 2022.
Investing.com, Macrotrends, CompaniesMarketCap — sources for split-adjusted historical prices and outstanding share counts.
Morningstar, Forex.com, Capital.com — market commentary and analysis on institutional and retail responses to stock splits.

(Reporting dates noted where applicable: Reuters and AP coverage dated Jun 10, 2022; Tesla press releases dated Aug 11, 2020 and Aug 5, 2022.)

Notes for editors

Exact dates and direct quotes from Tesla press releases are included above. Please update this article if Tesla announces any future splits. Future updates should cite Tesla press releases, SEC filings and contemporaneous market coverage.
For clarity: the phrase "has tesla ever split their stock" appears multiple times to match common search queries and improve findability. The factual answer is that Tesla has completed two stock splits: a five-for-one in 2020 and a three-for-one in 2022.