Tesla (TSLA) shares slid on Monday but recovered much of their losses after Reuters reported a Securities and Exchange Commission (SEC) probe into the electric vehicle giant based on a whistle-blower complaint of solar panel defects.
The stock came off its lows of the session by 1:50 p.m. ET, recovering much of its losses. Tesla shares were on track to close in bear market territory, which is when a stock has declined 20% or more from its recent high.
On Monday morning, Tesla shares were trading at around $976 as of 11:30 AM ET. The company’s market cap fell to about $982.3 billion.
Tesla shares hit an all-time high of $1,229.91 on November 4th. The company hit $1 trillion in valuation for the first time ever on October 25th.
A letter from the SEC obtained by Reuters probes claims that Tesla failed to disclose fire risks associated with solar panel system defects over several years.
Tesla shares have been on a decline since November after CEO Elon Musk began selling shares of the electric vehicle maker, a move he telegraphed back in September.
The company’s market cap briefly fell below $1 trillion on November 15th during intra-day trading, amid Musk’s sale of stock which was spaced out over days.
Ines covers the U.S. stock market. Follow her on Twitter at @ines_ferre
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