Tesla stock fell 0.7 % in Tuesday's premarket after CEO Elon Musk sold more shares of the company, according to a report filed late Monday.
The stock was also under pressure due to a $162 million lawsuit filed by JPMorgan Chase against the electric vehicle producer.
The Wall Street behemoth sued Tesla on Monday in the Southern District of New York, citing breach of contract over stock warrants that were set to expire this year. Tesla was required to produce shares or cash, according to the bank, if its stock price was above the strike price of the warrants at the time the contract between the businesses ended, which it was.
Over the course of the episode, JP Morgan repriced the options twice, claiming that its attempts to change warrant prices were permitted by the contract. Tesla's lawyers claim that the bank took advantage of the business's stock price volatility after Musk's infamous "funding secured" tweet in 2018, in which he fraudulently claimed to have obtained financial backing to take the company private again.
According to new filings, Musk sold 934,000 shares on Monday, bringing the total number of shares sold to 7.3 million and a total value of $7.8 billion, still short of the $10 billion tax penalty Musk is expected to incur, according to reports. As a result, he may need to sell additional stock to pay his obligations.
Musk received options as compensation, which resulted in a hefty tax bill. He has previously stated that he may sell up to $20 billion in stock, or around one-tenth of his total holdings.