Tesla Inc. said it would enact a 5-for-1 stock split after a share-price surge over recent months vaulted the electric-vehicle maker to the status of most-valuable car company as Chief Executive Elon Musk navigated the pandemic.
Enthusiasm in Tesla’s stock has been fueled by four consecutive quarters of profit. The company’s shares rose more than 6% in after-hours trading following the announcement after closing lower Tuesday at $1,374.39.
Tesla’s move follows one from Apple Inc., which last month said its board had approved a 4-for-1 stock split, aiming to make the stock more accessible to a broader base of investors.
Tesla, which started trading publicly in 2010, has seen its stock more than triple in value this year—and rise nearly sixfold over the past 12 months.
Mr. Musk, who has criticized the company’s stock price as too high, has said on Twitter that a split was worth discussing at the company’s annual shareholder meeting. That meeting has been pushed back to September amid the pandemic. Several investors had urged Mr. Musk to pursue a stock split.
