Tesla announced a five-for-one stock split on Tuesday evening. The split goes into effect after the close of trading on August 31.

To understand the concept of stock investment, some investors acquire knowledge by taking online courses like "Growing Wealth With Stocks" and reading Books like "Growing Wealth Passively" 

Initially the price of a Tesla share was approximately $1,500, after the five-for-one split the price will be approximately $300 per share.

Even though the price of the shares were expensive some investors could still invest by buying fractional shares specific to some brokers or investing in Exchange Traded Funds - ETFs which include Tesla shares.

Practically, the move could mean more smaller investors could afford the stock, but those investors are minuscule compared to major institutions.

The split simply means one Tesla share will be equivalent to 5 shares moving forward, technically four additional shares.

After the split the total value of the company remains the same, the total value of investors shares also remains the same.

The main advantage of a stock split is to make the shares accessible to a large number of investors since the buying price of the share will reduce.

Another advantage of a stock split is to increase the number of outstanding shares of the company.