TESLA STOCK SPLITTING

SAN RAMON, Calif. — Tesla will split its stock for the first time in its history so more investors can afford to buy a stake in the electric car pioneer following a meteoric rise in its market value.

The five-for-one stock split announced Tuesday won’t change how much Tesla’s business is worth but will automatically reduce the price of its shares by 80% when it’s completed on Aug. 31.

The sharp drop in price per shares creates a wider universe of potential investors and also often has the psychological effect of making it seem as if a stock is on sale. Apple’s stock price has surged by 14% since the iPhone maker disclosed a fourfor-one split less than two weeks ago.

Tesla’s shares already have tripled so far this year to give the automaker a market value of $256 billion — nearly three times more than the combined value of long-established rivals Ford Motor, General Motors and Fiat Chrysler.