ETFs Heavy with Tesla Down on SEC Lawsuit Against Elon Musk

The decision to privatize Tesla halted trading of the company’s shares for 92 minutes, leaving Tesla investors in a panic. Not long thereafter, Musk reneged on the decision after reports surfaced that a Saudi Arabian sovereign wealth fund and tech giant Apple were potential suitors to purchase Tesla. Aside form Musk’s mercurial behavior as of late, the electric carmaker continues to burn cash as it struggles to secure alternate sources of funding.

“We see the potential for negative sentiment to impact demand and employee morale,” Morgan Stanley analyst Adam Jonas said in an investor note. “In our view, this is particularly a risk if the situation is not resolved relatively quickly.”

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