San Francisco, Aug 12 (IANS): Elon Musk-run Tesla has announced a five-for-one split of its common stock that goes into effect on August 21.

The move that could help smaller investors afford Tesla stock resulted in Tesla stock surging 7 per cent in the extended session on Tuesday.

"The Board of Directors has approved and declared a five-for-one split of Tesla's common stock in the form of a stock dividend to make stock ownership more accessible to employees and investors," Tesla said in a statement.

Each stockholder of record on August 21 will receive a dividend of four additional shares of common stock for each then-held share, to be distributed after close of trading on August 28.

"Trading will begin on a stock split-adjusted basis on August 31, 2020," said Tesla.

Tesla shares have gained 229 per cent this year.

Apple has also announced a 4-for-1 stock split after shares of the iPhone maker surged more than 80 per cent in the past year.

Tesla reported profits for the fourth straight quarter last month, making $6 billion in revenue and $104 million in net income in its June quarter even as the Covid-19 pandemic shut its factories.