Keep scratching your head Elon Musk oii!
Shares of Tesla Inc closed lower with big losses, dismissing reports of an investigation into the electric car company.
Tesla shares were down 6.4% at US $ 950.50 during New York morning trading session. It was down 23% from a record high ever recorded on November 4 at US $ 229.91.
The stock is said to enter a bearish phase when it falls 20% on a closing basis.
Tesla's market value also plunged below US $ 1 trillion for the first time since it hit that level on Oct. 25, however, the stock reduced its decline to 0.6% at the close with a market value of US $ 1.01 billion.
Meanwhile, according to a Reuters report on Monday, the Securities and Exchange Commission has opened an investigation into Tesla over allegations of providing information about solar panel defects.
In addition, a source from the New York Times also reported on Tesla engineers who questioned the safety of the company's Autopilot system until it became the subject of an investigation by the United States National Highway Traffic Safety Administration.
Tesla has been under pressure since Dec. 1 due to concerns over the Omicron variant and a hawkish -toned message from the Federal Reserve gripping the market.
Those factors have burdened tech stocks and caused Tesla to decline 11% in the last 3 trading days of last week.
Elon Musk's continued sale of his shareholding, which has so far sold shares worth more than US $ 10 billion, has also dragged on investor confidence.
Tesla shares are up 43% this year from a 22% gain in the S&P 500 index.
Most of Tesla’s profits came from a surge in October after positive news including strong third -quarter results and large orders from car rental company Hertz Global Holdings Inc.
Meanwhile, shares of electric cars were mixed on Monday with Rivian Automotive Inc making an appearance on the market recently gaining 12%. Lucid Group Inc. fell 19% after revealing that it received a subpoena from the SEC on Friday. It closed down 5.1%.
