Tesla seeks 2nd stock split in less than 2 years
NEW YORK — Shares of Tesla jumped 8% Monday after the electric car maker announced its second stock split in less than two years.
The company said in a regulatory filing, and also in a tweet, that it plans to make a request at an upcoming annual shareholders meeting to increase its number of authorized shares so that it can split the stock in the form of a dividend.
It did not say when a split would occur or the ratio of such a stock split, but it would follow similar maneuvers by a trio of tech companies that have seen their shares soar in recent months.
Shares closed up 8.03% at $1,091.84. A stock split does would change the price-per-stock, but not the overall value of those holdings. It can push up the price of a company’s stock, at least temporarily, and the announcement did just that on Monday.
Tesla had a 5-for-1 stock split in August 2020, which went into effect one day after the company announced that it planned to sell up to $5 billion worth of its stock.
FedEx Corp. founder Fred Smith will step down as CEO in June
FedEx Corp. said Monday that Fred Smith will step down on June 1 as CEO of the package-delivery company that he founded and be succeeded by the company’s president and chief operating officer.
Raj Subramaniam will serve as both CEO and president, and Smith will become executive chairman, the package-delivery company said.
Smith, 77, started FedEx in 1973, delivering small parcels and documents more quickly than the post office could.
Wall Street adds to winning streak
Stock indexes bounced back from a midday slump to finish higher Monday, adding to the market’s recent winning streak despite lingering worries about the resilience of the global economy amid surging inflation and geopolitical tensions.
The S&P 500 rose 0.7% after being down as much as 0.6%. The benchmark index posted a 1.8% gain last week and a 6.2% rise the previous week. It’s also up eight of the last 10 trading days, which is “pretty impressive,” said Randy Frederick, vice president of trading & derivatives at Charles Schwab.
Frederick said many investors may have reached a point of “panic exhaustion,” which could explain the market’s recent gains. Plus, he notes, apart from inflation, economic fundamentals look good.
“People complain about inflation, but they’re still spending and they’re still traveling,” he said.