Tesla (TSLA) Stock Drops After-Hours, SEC Investigating Possible Securities Breach

NEW YORK (TheStreet) -- Shares of Tesla Motors (TSLA) are retreating 1.24% to $221.99 in after-hours trading on Monday as the SEC is investigating the electric car maker for a potential securities law breach for not telling investors of a crash involving its Autopilot feature, according to a source cited by the Wall Street Journal.

The Palo Alto, CA-based company alerted the National Highway Traffic Safety Administration to the fatal May 7 accident and probed whether the car was using the Autopilot function.

But Tesla did not disclose the crash to investors in a securities filing, the Journal noted.

The SEC is examining whether Tesla should have disclosed the crash as a "material" event or a development a reasonable investor would regard as important, the source added.

The agency's inquiry is in a very early stage and may not lead to any enforcement action, the source told the Journal.

A company spokesperson said Tesla has not received any communication from the SEC regarding the information in the Journal report, CNBC.com said.

Earlier today, Tesla stock climbed after CEO Elon Musk tweeted that he is working on the second part of his "top secret Tesla masterplan" and hopes to publish it later this week.

Separately, TheStreet Ratings Team has a "Sell" rating with a score of D+ on the stock.

The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: TSLA

More from Markets

Stocks Turn Negative for the Year, Dow Drops Another 500 Points

Stocks Turn Negative for the Year, Dow Drops Another 500 Points

Jim Cramer's Advice for Investors During a Bear Market

Jim Cramer's Advice for Investors During a Bear Market

Tech Stocks Continue to Take Beating

Tech Stocks Continue to Take Beating

Amazon Reportedly Among Bidders for Disney's Regional Sports Networks

Amazon Reportedly Among Bidders for Disney's Regional Sports Networks

Making Sense of the Mysterious Strategic Petroleum Reserve

Making Sense of the Mysterious Strategic Petroleum Reserve