Tesla shares falls after SEC reportedly launches probe into company's solar panel defects

Tesla shares on Monday showed signs of reversal after its fall. The shares of automobile manufacturers ended the day mostly unchanged as it opened after reports claiming a Securities and Exchange Commission investigation into the company emerged. According to international reports, the SEC launched a probe into the company in response to a former Tesla employee’s complaint that alleged the company failed to notify its stakeholders about a failure in its solar panel systems.

According to Reuters, the whistleblower launched a complaint alleging that the company run by billionaire Elon Musk failed to properly notify its shareholders and the public of fire risks associated with its solar panel systems. The agency report also cited communications with the whistleblower, Steven Henkes, dated September 24 regarding the matter. However, the SEC is yet to reveal if it had opened an investigation into the electric car company.

Following the report of SEC probe, Tesla shares down as much as 6.5 per cent. The shares slipped into a bear market with several investors selling the stocks post the news break. However, the shares managed to gain some points back towards the end of Monday and closed at USD 1,009.01 which is 5.96 less than its opening, but almost a per cent more than its previous low. The news about the SEC probe found significance as Henkes, revealed that he had sued Tesla back in 2020 following his firing, claiming that he was dismissed in retaliation for raising safety concerns.

Elon Musk sells Tesla shares

Elon Musk recently sold his Tesla stocks worth about USD 6.9 billion, which roughly translates to Rs 51,289 crores. The world's richest man sold some of his stocks in Tesla after he conducted a Twitter poll on November 7, 2021. In the poll, Musk asked his audience whether or not they supported him selling 10 per cent of this stake in Tesla. Further, the Tesla CEO also said that he will abide by the result of the poll, "whichever way it goes."

About three and a half million people turned in their response on Musk's Twitter poll, from which about 57.9 per cent responded in favour of Musk selling his stocks. Musk also mentions in the following tweet that he does not take a cash salary or bonus from anywhere, he only has stocks and hence the only way for him to pay taxes is to sell his stocks. It is important to note that the stock sale was Musk's first in five years. According to CNBC, the taxes roughly amount to USD 15 billion. 

Image: AP