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Tesla shares slide after SEC reportedly probes solar panel defects

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Elon Musk, SpaceX CEO and Tesla CEO gestures in a conversation during the E3 gaming convention held in Los Angeles on June 13, 2019.

Mike Blake | Reuters

The shares of TeslaIn early trading on Monday, more than 2 % slumped ReutersAccording to reports, the U.S. Securities and Exchange Commission opened an investigation into the company.

In response to a whistleblower claim from a former Tesla employee that Tesla failed to notify shareholders or the public properly about the fire risk associated with solar panel systems in its solar panels, the SEC initiated the probe, according to Reuters. The whistleblower cited communication between the agency and the SEC dated September 24.

Tesla shares plunged more than 20% from their Nov. 4 52-week high, which means they’re in a bearish market.

Following a complaint filed by Steven Henkes in 2019 as a whistleblower, the SEC has begun an investigation. Henkes is a former Tesla employee. Henkes was a former employee of Tesla and was terminated in 2020. He sued Tesla alleging that he was dismissed as a result of raising safety concerns.

Henkes had filed a complaint against the U.S. Consumer Product Safety Commission. The commission now is investigating the automaker. CNBC previously reported.

WATCH: Tesla CEO Elon Musk sells more shares to pay taxes

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