Tesla has some bad news for its investors and fans

Tesla has some bad news for its investors and fans ...

Get Tesla Inc Reportinvestors and fans will have to wait patiently or not.

Many of them had announced on their calendars the date at which the manufacturer of high-end electric automobiles would file its proxy statement with the Securities and Exchange Commission.

The company, like the rest of the public enterprises, had 120 days after the December 31 fiscal-year end to make the disclosure. Right now, the Austin EV group declared a stock split.

The 120 days of the day fell on April 30, a Saturday, so members of the investment community and Musk''s fanbase waited till May 2 to receive the document.

The company has just stated that it may take additional time to prepare the document.

"We currently anticipate that our official proxy statement for the stockholders'' annual meeting in 2022 will be filed later than the 120th day after the end of the last fiscal year," the company said in a SEC filing on May 2.

It didn''t provide additional information, as it decided to file the proxy statement. Investors still do not know the facts about the proposed stock split.

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The Company Needs More Time to File

Tesla had proposed a stock split in March. "Tesla will ask shareholders to vote at this years annual meeting to authorize additional shares to enable a stock split," the company said on Twitter on March 28.

The stock market did not disclose details, and investors pinned their hopes on the proxy statement. Some investors feared that a split would dilute their holdings. That doesn''t happen. A split increase the number of shares outstanding and reduces the price proportionately. It does not change the company''s market capitalization or the value of any one holder''s stake. It merely makes the stock more expensive to buy.

The company has not announced a date for the shareholder meeting in 2022. Last year, the shareholder meeting was held in October. A shareholder vote in favor would enable the group to execute the stock split.

According to experts, the company wants to increase the share price by attracting more investors and increasing its liquidity the trading activity of its shares. Stock-price rallies may be triggered by stock splits, although retail traders are plummeting.

Tesla''s stock at the last check was trading around $866. It''s roughly 30% below its 52-week high of $1,243, set in early November.

In August 2020, Tesla declared a 5-for-1 split, giving every Tesla owner five shares of the company for each one they owned.

This year, Google (GOOGL) - Get Alphabet Inc. Class A Report, Amazon (AMZN) - Get Amazon.com, Inc. Report, and GameStop Corp. Class A Report. among others, have said they''d split their shares.

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