FILE PHOTO: A Tesla logo is seen at the Tesla Shanghai Gigafactory in Shanghai, China January 7, 2019. REUTERS/Aly Song
November 9, 2021
(Reuters) – Shares of Tesla Inc inched higher in premarket trading on Tuesday, stabilizing after speculation of a potential stake sale by chief Elon Musk spurred a near 5% drop in the previous session.
Tesla’s shares were up 1.7% at $1183.2 by 0917 GMT.
Monday’s sell-off wiped out around $60 billion off the electric carmaker’s market value after Musk asked his Twitter followers if he should sell stake worth about $21 billion in the company. Nearly 58% said they would support such a sale.
While Musk’s tweets raised questions about violation of his settlement with the U.S. securities regulator, some analysts said weakness in the stock could prove short-lived as investors remain bullish about the high-flying company’s growth prospects.
He was fined $20 million by the SEC for tweets in 2018 and required to step down as chairman.
Investors will be closely watching SEC filings from Tesla for any details on Musk’s plans. SEC rules give companies four working days to report major events.
(Reporting by Sruthi Shankar in Bengaluru; Editing by Subhranshu Sahu)
Source: One America News Network
