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Tesla stock jumped as much as 6 percent in after-hours trading Tuesday after the company announced a five-for-one stock split, set to go into effect on August 31.
Tesla (TSLA) noted in a statement that the split is intended to “make stock ownership more accessible to employees and investors.”
A stock split creates more shares of a company without changing the underlying dollar value of any single investor’s holdings.
By increasing the number of shares available, the company can attract new investors who might otherwise be put off by the high price of a single share.
Tesla’s stock have risen more than 200 percent since January to $1,374, and its market capitalization has surpassed Toyota (TM).
Apple (AAPL) also announced a stock split last week — its stock has climbed more than 45 percent this year.
The two companies’ success mirrors the overall strong performance of the tech sector in a year that has been turbulent for Wall Street.