Tesla’s (TSLA) stock went downhill as the SEC opened an investigation into the company. The SEC received information from a whistleblower that the company had failed to inform shareholders of the risks associated with its solar panel systems that it develops and the defects developed in it over the years.
Tesla’s already been in trouble with the SEC over malfunctions in its automated driver system and news of its solar panels having issues pushes the stock over the edge. The engineer, Henkes, who filed the complaint was fired from Tesla in August 2020 and shortly after sued the company for unfair dismissal. The withholding of information places Tesla in a sticky situation — being a publicly-held company means that the firm has to disclose everything of shareholder importance to its stakeholders.
Why it matters
The first in line to get hit whenever SEC investigations are opened is the stock and Tesla is no different. Tesla shares have fallen to their lowest level in the past two months with them being down by 3.6% over the past five days.
