Tesla shares fell as much as 2.2% on the news in postmarket trading and were down 1% as of 6:53 p.m. The stock had closed Tuesday at a record high and was up 21% for the year. Tesla did not immediately respond to a request for comment.
A suspension of Tesla’s sales license would be a major blow to the Austin, Texas-based company. California, the most populous state, is both the company’s biggest sales market in the US and home to one of Tesla’s largest factories, making even a temporary disruption potentially very costly. The move by California could have nationwide implications for Tesla’s efforts to expand its businesses selling advanced technology in its vehicles, said Haris Khurshid, chief investment officer at Karobaar Capital.
