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.

American attitudes about government and politics | US government and civics | Khan Academy

Fighting Wildlife Crime: "Poaching Is Stealing From All of Us." | National Geographic

View All

How Imaginary Numbers Were Invented

Mathematics began as a way to quantify our world, to measure land, predict the motions of planets, and keep track of commerce. Then came a problem considered impossible. The secret to solving it was to separate math from the real world, to split algebra f…

15 Character Traits You Notice When Hanging Out With Rich, Successful People

If you want to be rich and successful, then you have to learn how to hang around rich and successful people. They should feel like you’re one of them, not like you’re an outsider. When you hang around successful people long enough, you’ll see that they ju…

Watching This Will Make You Want to Bake Delicious Bread for a Living | Short Film Showcase

I don’t want to say that the bakery is an experiment, but it’s more like it’s more like saying why not, why not do it right. My name’s Stefan Stefan centers, and I’m a baker. I run the wide-awake bakery. My name is David McInnis and my… A lot of people t…

Example: Intersection of sine and cosine | Graphs of trig functions | Trigonometry | Khan Academy

We’re asked at how many points did the graph of y equals sine of theta and y equal cosine theta intersect for theta between 0 and 2 pi, and it’s 0 is less than or equal to theta, which is less than or equal to 2 pi. So, we’re going to include 0 and 2 pi, …

Is Meat Bad for You? Is Meat Unhealthy?

When our vegetarian ancestors started eating meat around two million years ago, it wasn’t just because animals taste great; it was pure necessity. Climate change made many of the plants our ancestors relied on less available, and meat bridged that gap. Fr…

Hide Out On the Border | Badlands, Texas

This is the end of the road right here, a church. Oh, there’s in Mexico! Go see Fred. I try to come check on him, you know, at least once a month. Down here I get tainted; he needs something, I’ll bring it. This is Fred’s little hideout here. There’s Fre…

Tesla Stock Dividend is just a stock split

More Articles