(Reuters) – Shares of Tesla Inc inched higher in premarket trading on Tuesday, stabilizing after speculation of a potential stake sale by chief Elon Musk spurred a near 5% drop in the previous session.
Tesla’s shares were up 1.7% at $1183.2 by 0917 GMT.
Monday’s sell-off wiped out around $60 billion off the electric carmaker’s market value after Musk asked his Twitter followers if he should sell stake worth about $21 billion in the company. Nearly 58% said they would support such a sale.
While Musk’s tweets raised questions about violation of his settlement with the U.S. securities regulator, some analysts said weakness in the stock could prove short-lived as investors remain bullish about the high-flying company’s growth prospects.
He was fined $20 million by the SEC for tweets in 2018 and required to step down as chairman.
(Reporting by Sruthi Shankar in Bengaluru; Editing by Subhranshu Sahu)