Tesla falls after news of SEC investigation

Tesla (TSLA.US) share prices are falling after news that the SEC has opened an investigation into defective solar panels created by Elon Musk's company. As reported by the regulator, the case relates to a whistleblower's complaint that the company failed to perform its duties and provide adequate information related to the defective solar panels. The company is additionally under investigation for accidents caused by the automated driver assistance system. 

The committee began its investigation after notices from a former Tesla quality manager who was fired in 2020. According to the former company employee, the dismissal was in retaliation for reporting safety deficiencies in the system.

Since its last peak on 4 November 2021, the company's stock has fallen 20%. Currently, the company's shares are losing almost 3.5%.

Tesla (TSLA.US) shares have outlined an incomplete double top formation and are currently testing support set by the recent bullish upward gap. Maintaining these levels should encourage the demand side to test local resistance levels near the 23.6% Fibo retracement. If share prices fall below $950, the key support will be the 50% retracement, which coincides with the 100 EMA (yellow line). Source: xStation 5