Tesla announced on Monday that it will seek investor approval to increase its number of shares to allow for a stock split in the form of a dividend, issuing its shares at about 5%.

The Board of Directors has already approved and should go to a vote at an annual meeting. If the stock split "Stock Split" is approved, it will be the last after a five-for-one split in August 2020.

Since the stock split in 2020, they have increased 128%, boosting the company's market capitalization above $1 trillion, making it the largest U.S. automaker.

"This (stock split) could further fuel the Tesla stock sphere that has been surging for the past two years," said David Trainer, chief executive of investment research firm New Constructs.