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Tesla Announces 5-For-1 Stock Split; Shares Rise After Hours

Move follows huge gains for electric car maker this year.

Tesla shares were up after the carmaker announced a 5-for-1 stock split.

The company announced the move in a press release late Tuesday, and shares  (TSLA) - Get Tesla Inc Report  rose 5.6% in after hours trading after closing the session at $1,374.39. 

"Each stockholder of record on August 21, 2020 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, 2020. Trading will begin on a stock split-adjusted basis on August 31, 2020," the company wrote in the release. 

Tesla shares have more than tripled year to date, despite the impacts of COVID-19 on its factory operations earlier this year and on consumer demand for luxury vehicles. 

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For the second quarter, Tesla reported 90,650 vehicle deliveries, sales of $6.04 billion, and GAAP earnings per share of 50 cents, beating consensus estimates on all counts. 

The company told investors at the time that it has "the capacity installed to exceed 500,000 vehicle deliveries this year, despite recent production interruptions."

The second quarter GAAP profit puts Tesla in the running for inclusion in the S&P 500 index, which requires four consecutive quarters of GAAP profits in addition to a handful of other qualifications for possible inclusion in the index. Inclusion is dictated by a S&P 500 committee, which typically reevaluates the index on a quarterly basis. 

Tesla is the second high-profile company to announce a stock split in recent weeks, with Apple  (AAPL) - Get Apple Inc. (AAPL) Report announcing a 4-for-1 split of shares in its most recent earnings release.