Shares of Tesla Inc (NASDAQ: TSLA) fell on Wednesday, finishing down 4.6%. The decline came as the S 500 and the Nasdaq Composite dropped 1.2% and 1.9%, respectively.

The electric vehicle (EV) maker's stock slid on Wednesday as investors took profits following Tuesday's record high and weighed the news that the California DMV had formally adopted a ruling finding the company misled consumers with its marketing.

On Tuesday, the DMV announced that it had adopted an administrative law judge's November ruling, which found that Tesla had violated state law by using terms like "Full Self-Driving Capability" and "Autopilot" to describe driver-assistance features that can't operate autonomously. The company now has 60 days to address its use of the misleading language or face a 30-day suspension of its dealer license.

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Source Fool.com