Tesla Inc on Tuesday announced a five-for-one stock split of its common stock that goes into effect on August 21.

The move that could help smaller investors afford Tesla stock also it resulted in sending the electric carmaker’s recently high-flying shares up 7% in extended trade.

Tesla’s stock, which traded at $1,475 after the announcement, is among the highest priced on Wall Street, and the Palo Alto, California-based company said in a press release it was looking to make its shares more accessible to employees and investors.

“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.