Tesla Inc shares hit a fresh two-year low in volatile trading on Friday as top boss Elon Musk's promise to not sell his shares in the electric-car company for at least two years did little to reassure investors.
to not sell his shares in the electric-car company for at least two years did little to reassure investors.
"If Musk sells another billion or so dollars of shares in the near future, and that exerts downward price pressure on Tesla's share price, investors might have a decent claim for securities fraud," said Howard Fischer, a former U.S. Securities and Exchange Commission attorney and a partner at law firm Moses & Singer.
"If this was another CEO of a Fortune 500 company making that statement, the market would be confident that 'he said it, so he's not selling,'" said Dennis Dick, head trader and market structure analyst at Triple D Trading. The stock was last down 0.6% on Friday after falling as much as 3.5% earlier to its lowest since September 2020.Musk faced the regulator's ire for tweeting about his plan to take Tesla private in 2018 and was forced to step down as the company's chairman, appoint additional directors and pay $40 million in penalties. The SEC also demanded that controls be put in place to oversee Musk's communications.
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