Electric vehicle (EV) king, Tesla (NASDAQ: TSLA), will ask shareholders to approve a 3-for-1 stock split at its Annual Meeting of Stockholders on Aug. 4. With Tesla stock down nearly 40% year to date, the split may be a tactic to try and attract new retail investors and potentially boost its share price. When stock splits transpire, the number of outstanding shares increases, and the price per share decreases.

This occurs proportionately so that the actual market value of the company remains unchanged. So, while it's possible that a stock split could lure a new wave of individual investors who otherwise wouldn't pay a higher price, nothing changes about the company, fundamentally speaking. For this reason, investors shouldn't be concerned about Tesla's potential stock split; rather, they should focus on how the underlying business is currently performing.

Let's dive into the company's current situation and decide whether or not it's a sound investment opportunity right now. 

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Source Fool.com