The sell-off in Tesla is getting worse and the stock is now down 11% to $US120.72.
This is well down from the Sept. 30 closing high of $US193.37.
Last week three Tesla employees were injured by hot metal after a low-pressure aluminium casting press malfunctioned.
Deutsche Bank’s Dan Galves has previously said that “there has understandably been significant profit-taking over the last few weeks by investors that have made substantial returns over the last 6 months.”
Now law firm Wohl & Fruchter is investigating the electric auto maker on concerns about the quality of its earnings. From the press release:
“The law firm of Wohl & Fruchter LLP is investigating potential federal securities law claims against officers and directors of Tesla Motors, Inc. (Tesla) (TSLA) in connection with alleged violations by Tesla of Securities and Exchange Commission (SEC) rules governing the disclosure of financial metrics that do not comply with Generally Accepted Accounting Principles (GAAP).”
Elon Musk has previously said he thinks the stock is overvalued.
The stock is up 270% year-to-date.
Here’s a look at the five-day chart: