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Tesla stock higher after Monday’s sale




A Tesla logo was seen at the Tesla Shanghai Gigafactory in Shanghai, China on January 7, 2019. REUTERS / Aly Song

November 9 (Reuters) – Shares of Tesla Inc (TSLA.O) rose in pre-market trading on Tuesday, stabilizing after speculation of a potential sale of shares of CEO Elon Musk spurred a fall of almost 5% in the previous session.

Tesla’s shares rose 1.7% to $ 1183.2 by 0917 GMT.

Monday’s sale wiped out around $ 60 billion of the electric carmaker’s market value after Musk asked Twitter followers if he would sell shares worth around $ 21 billion in the company. Almost 58% said they would support such a sale. read more

While Musk’s tweets raised questions about a breach of its settlement with the US Securities and Exchange Commission, some analysts said that the weakness in the stock may prove to be short-lived as investors remain optimistic about the high-flying company’s growth prospects.

He was fined $ 20 million by the SEC for tweets in 2018 and ordered to resign as chairman of the board.

Investors will pay close attention to Tesla’s SEC documents for details on Musk’s plans. The SEC rules give companies four working days to report major incidents.

Reporting by Sruthi Shankar in Bengaluru; Editing Subhranshu Sahu

Our standards: Thomson Reuters Trust Principles.



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