Tesla's 1:3 spin-off of the stock officially took effect, falling to a range of US $300.

According to foreign media reports, Tesla's stock split plan at 1:3 came into effect after the US stock market opened on Wednesday, and the shares will officially start trading on a split-adjusted basis on Thursday local time.

Stock split refers to a way for a listed company to change its stock price and the number of outstanding shares without affecting its market value or operation.

On June 10 this year, Tesla announced the 3:1 stock split plan for the first time. On August 4 this year, Tesla shareholders voted for the plan at the annual shareholders' meeting.

It is reported that the split is Tesla's second split in nearly two years, and the company's last split was in August 2020, when Tesla's shares were split into five shares.

Although Tesla's share price has fallen about 25 per cent so far this year as the market has sold off as a whole, it has soared about 200 per cent since its last break-up in August 2020.

Tesla's share price has risen about 25 per cent since the split was announced in June. The company's shares have risen nearly 13 per cent in the past month.

Tesla is not the only company to split shares this year. Dozens of companies, including Alphabet, Amazon and Shopify, have announced or implemented stock splits since the start of the year.

In February, Google's parent company, Alphabet, split its shares at 20:1. A month later, Amazon split the stock at 20:1.