Tesla Shares Fall After Monday Morning Reuters report Allegations that the Securities and Exchange Commission is investigating claims that electric-automakers failed to properly disclose the safety risks associated with their solar panels drove the stock’s value to an all-time high just last month. Carrying concerns add up.
Tesla stock falls up to 5% after Reuters informed of The SEC opened an investigation in 2019 on a whistleblower complaint filed by a former field quality manager, alleging Tesla and the energy company it acquired in 2016, SolarCity, publicly held “liability and risk of property damage, risk of injury, not disclosed. [to] users [and] fire” before the acquisition.
The whistleblower complaint also alleged that Tesla failed to tell customers that faulty electrical connectors could cause a fire, Reuters reported on the SEC investigation, marking the agency’s first SolarCity acquisition that itself took a year-long Shareholders gave rise to lawsuits.
The SEC confirmed that its enforcement department was still actively investigating the claims in a letter to whistleblowers in late September, according to Reuters, which said it independently verified the correspondence.
Monday’s drop pushed Tesla’s stock down more than 20% from its record high of $1,229 on Nov. 4, a day after the company’s market value fell by more than $250 billion in the same period.
Representatives for Tesla and the Securities and Exchange Commission did not immediately respond. Businesshala’ Prayer