Tesla announces five-for-one stock split

Tesla Inc on Tuesday announced a five-for-one stock split, as the electric carmaker looks to make its shares more attractive to retail investors following a stunning rally this year.

Shares of the company, which have more than tripled this year to close at about $1,374 in regular trading, were up nearly seven percent after the bell.

READ: Tesla's surging stock value lifts Elon Musk higher on billionaire list

The move follows a similar announcement by Apple Inc in late-July. The iPhone maker said it will split its stock four-to-one, the first such action since 2014.

Tesla in July posted a second-quarter profit as cost cuts and strong deliveries helped offset coronavirus-related factory shutdowns, clearing a hurdle that could lead to the carmaker's inclusion in the S&P 500 index.