Why Tesla Stock Got Clobbered Today
Shares of Tesla (NASDAQ: TSLA) ran into a ditch Monday morning, sliding 4.8% as of 10 a.m. EDT on twin negative news items from Reuters and The New York Times.
Let's cover the more topical news from Reuters first. Remember how last week, Tesla stock got a brief pop, and investors had a chuckle, over news that Tesla was selling a limited edition "Cyberwhistle" shaped like its long-awaited (and still not here) Cybertruck? Well, today we learned what that inside joke was all about.
Turns out, a whistleblower within Tesla's solar systems division (the artist formerly known as SolarCity) is alleging to the Securities and Exchange Commission that the company "failed to properly notify its shareholders and the public of fire risks associated with solar panel system defects over several years," reports Reuters. The SEC is taking the allegations seriously and has opened an investigation. Although both the SEC and Tesla declined to comment, Reuters reports that the scale of the scandal could be significant, affecting "more than 60,000 residential customers in the U.S. and 500 government and commercial accounts."
Source Fool.com
