Tesla shares inches higher after selling off on Monday, Auto News, ET Auto
Tesla Inc’s shares rose in early trading Tuesday and stabilized after speculation over a possible stake sale by boss Elon Musk caused a decline of nearly 5% in the previous session.
Tesla’s shares rose 1.7% to $ 1,183.2 by 0917 GMT.
Monday’s sell-off wiped the electric car maker’s market value by around $ 60 billion after Musk asked Twitter followers to sell about $ 21 billion worth of stake in the company. Almost 58% said they would support such a sale.
While Musk’s tweets raised questions about a violation of his settlement with the U.S. Securities and Exchange Commission, some analysts said the stock’s weakness could prove short-lived as investors remain bullish on the high-flying company’s growth prospects.
He was fined $ 20 million by the SEC in 2018 for tweeting and was forced to step down as chairman.
Investors will be closely monitoring Tesla’s SEC filings for details on Musk’s plans. The SEC rules give companies four business days to report important events.