Tesla announced a 3-for-1 stock split on Friday, in part to make its shares "more accessible" to ordinary investors.
The news comes after the company's stock has lost 42% of its value so far this year.
In after-market trade, the electric vehicle maker's stock increased 1.1 percent, climbing $7.31 to $704. In a securities filing on Friday, the business disclosed the stock split.
Tesla's stock has fallen this year as a result of economic factors that have slowed output at a Tesla factory, as well as Elon Musk's $44 billion bid for Twitter.
Tesla's stock has been under pressure as a result of Musk's decision to utilize his Tesla holdings to fund the social network purchase.
Stock splits have no effect on a company's value. For example, if a company's stock trades at $100 and then executes a 2-for-1 stock split, investors will end up with two $50 equities.