Tesla (TSLA) shares slid on Monday but recovered much of their losses after Reuters reported a Securities and Exchange Commission (SEC) probe into the electric vehicle giant based on a whistle-blower complaint of solar panel defects.
The stock closed down only .5% lower, after being down as much as 6% during the session.
On Monday morning, Tesla shares had dipped into bear market, off more than 20% from its recent highs in November. The company’s market cap fell to about $982.3 billion at around 11:30 AM ET.
Tesla shares hit an all-time high of $1,229.91 on November 4th. The company hit $1 trillion in valuation for the first time ever on October 25th.
A letter from the SEC obtained by Reuters probes claims that Tesla failed to disclose fire risks associated with solar panel system defects over several years.
Tesla shares have been on a decline since November after CEO Elon Musk began selling shares of the electric vehicle maker, a move he telegraphed back in September.
The company’s market cap briefly fell below $1 trillion on November 15th during intra-day trading, amid Musk’s sale of stock which was spaced out over days.