The Wall Street is getting nervous due to the habits of scuffling of Elon Musk, Tesla CEO, against federal securities regulators.
Recently, there was a considerable fluctuation observed in Tesla shares, plunged by almost 2.2 percent before recuperating. The share value leaped few hours after the Securities and Exchange Commission again claimed over Tesla due to a blatant violation of a settlement by Elon Musk for conferring the 2019 production forecast of the company through a tweet on February 19. A request has been filed by the agency to hold the CEO of Tesla in contempt.
Concerns are been rising that troubles created by Musk with the SEC have become an unnecessary and cumbersome interruption for a company that has already been performing very well.
Tesla has just reached its long-awaited goal of selling the Model 3 midsize variant of the electric sedan for $35,000. The variant appears to be a significant product for the company in the eyes of many investors. The company also revealed it’s another key product: Model Y, which is a crossover utility vehicle. Both the above-mentioned variants were disclosed by the company in the last month and even set their price lower than the remaining list of vehicles in an effort to balance the demand of the vehicles at a global level.
The company’s new production plant at Shanghai is under construction along with the expansion of its U.S.-located extensive production plant, Gigafactory.
Tesla has been struggling from long time with its stock value degradation. Several investors and analysts are portraying it as an unusual stock, which plunges irrespective of the company’s performance in the market.
Within three months of the current year, Tesla’s share value has plunged by 19%, and 16% decrease over the last 12 Months.