Tesla announced Wednesday that the company's board of directors has approved and announced a stock split plan that will split its common stock 1:5 in the form of a dividend, with the goal of making the company's shares more accessible to employees and investors.

Tesla's stock price closed down 3.11% on Tuesday to $1374.39. Up to now, the stock price has surged more than 6% after the market.

According to the announcement, as of August 21, 2020, every registered shareholder can receive a dividend of 4 additional common shares for each common share held by each registered shareholder. This dividend will be distributed after the market closes on August 28, 2020. Tesla shares will begin trading on August 31, 2020 on a stock split adjusted basis.