Tesla Inc TSLA  shares traded higher Tuesday afternoon. The company's Board of Directors approved a 5-for-1 split of Tesla's common stock in the form of a stock dividend to make stock ownership more accessible to employees and investors.

Each stockholder of record on Aug. 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 Aug. 28. Trading will begin on a stock split-adjusted basis on Aug. 31.

Tesla's stock closed Tuesday's session down 3.1% at $1,3,74.39 per share. The stock ticked up more 5.7% to $1,454 a share in after-hours trading.

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Tesla 5-for-1 stock split: Aug. 31
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Amazon next at 10-for-1?

— Brian Sozzi (@BrianSozzi) August 11, 2020 

Tesla surging 6% after hours on news of a 5-for-1 stock split. Here's what it could mean for the name $TSLA pic.twitter.com/w2vhheAWCA

— CNBC's Fast Money (@CNBCFastMoney) August 11, 2020

TESLA RISES 4.3% POSTMARKET AFTER ANNOUNCING 5:1 STOCK SPLIT

All you need to know about this "market"

— zerohedge (@zerohedge) August 11, 2020