Tesla Stock Dividend is just a stock split

2m read

·Nov 3, 2024

Tesla shares are trading higher today after they filed something signaling a stock dividend. But what is a stock dividend? Well, it's definitely not a dividend. A stock dividend is actually just a stock split with the word "dividend" mixed in to make it sound like if investors are getting something extra when they're actually getting nothing.

If you look at the form AK they filed, all they said is they're going to go through a process to enable a stock split of the company's common stocks in the form of a stock dividend. That's all it says; nothing else. The last time I heard the term stock dividend was when I was doing research for the book and looked into what Google did with respect to their shady stock dividend in 2014.

In a normal two-for-one stock split, what you'll see is one share of stock split into two identical shares at half the value. But that's not what happened with Google. So before 2014, Google only had one type of common stock, which were A shares with voting rights. So if it's split into two, investors should have ended up with two A shares.

But what actually happened was Google introduced C shares with no voting rights. So shareholders ended up with one A share with voting rights and one C share with no voting rights, both carved out of the 1 A share with voting rights. So overall, this was actually bad for Google shareholders.

But Google still had the audacity to call that stock split a stock dividend. You can learn more about the details of Google’s shady stock split in Chapter 6 of the book, which is available for free at this moment. We don't really know what Tesla intends to do with their stock dividend, aka split, but what I can guarantee you is they are definitely not going to pay their shareholders.

Stock are not backed by the company. Simple Logic

Second partial derivative test example, part 1

View All

Becoming a Millionaire: Roth IRA vs 401K (What makes the MOST PROFIT)

What’s up, guys? It’s Graham here. So, here’s a question that’s been coming up a lot recently, and this is a very confusing question for most people. That is this: What is better to invest in, a Roth IRA or traditional 401k? Now, this is actually a some…

Stunning Footage: Epic Animal Migrations in Yellowstone | National Geographic

[Music] The greater Yellowstone ecosystem has some of the most incredible Wildlife migrations in the [Music] world. We have the nine major elk migrations radiating out of the national parks and Wilderness areas every year. The famous 120-mile Pronghorn mi…

How to Focus Intensely

In a world that is growing in distraction, the ability to focus is becoming increasingly rare. It’s a skill that, simultaneously, is becoming increasingly valuable. Its demand is rising while its supply is decreasing, to put it in economic terms. In this …

RECESSION WARNING: My YouTube Income Is Crashing

What’s up, Graham? It’s guys here. So, things are getting serious, and we have a lot of indicators that would point to a potential recession. For example, it’s shown that a lack of conferences tends to coincide with a slowing economy. Exotic dancers say t…

The Zipf Mystery

Hey, Vsauce. Michael here. About 6 percent of everything you say and read and write is the “the” - is the most used word in the English language. About one out of every 16 words we encounter on a daily basis is “the.” The top 20 most common English words …

The Psychology of "Inside Out"

[Music] What does a child’s mind look like? You have memories of being a child, but that’s not really an accurate representation. It’s an older you reflecting on the past. Your childhood memories are likely different now from the experiences that formed t…

Tesla Stock Dividend is just a stock split

More Articles