Tesla shares slide 6% on doubts Elon Musk has the money to go private

Tesla CEO Elon Musk. Photo: Bloomberg

Tesla CEO Elon Musk. Photo: Bloomberg

New York: Tesla Inc continued to slide through Elon Musk's recognition of the obstacles that hindered his way of working to take the company in private and the emergence of another electric car company that could attract interest from a major investor. The shares tumbled no less than 5.7% at the opening of the trading Monday, when JPMorgan canceled all models in its price target for the possibility that Musk would buy some investors for $ 420 per share.

Analyst Ryan Brinkman, who assesses Tesla the equivalent of a sale, said that such a deal "may not even be formally proposed".

The bearish analysis followed a report Sunday that Saudi Arabia's sovereign wealth fund – the investor who described Musk as the hub of his plan to take Tesla privately – considered an interest in another US electric car company. ; s to buy. The Saudis public investment fund, which recently purchased nearly 5 percent of Tesla, is in talks for a separate $ 1 billion investment in Lucid Motors Inc. who would give the fund control over that new car manufacturer, Reuters reported.

The news combined the trauma of last week, when the shares of Tesla plummeted by 14 percent, the strongest decline since February 2016. Musk, 47, gave an alarming interview The New York Times in which he said that nobody had reviewed his tweet about taking the company privately before he posted it. His description of the use of a prescribed medication to sleep and the toll that Tesla has taken on has also raised doubts about the well-being of the more than average chief executive officer.

Tesla shares declined in the early years and declined 3% to $ 296.33 from 09:45 in New York. The flight last week has wiped out the year-to-date profit of the share.

Brinkman, who had raised his price target on Tesla to $ 308 after Musk's first take-private tweet on August 7, dropped it to the previous level of $ 195. He cited the CEO's blog of August 13, in which he said that the Saudi PIF had requested more information about how the transaction could be executed.

"We now think that such a process seems much less developed than we had previously thought", wrote Brinkman in a note to customers. Tesla taking private can be "more in line with high-level intention" than a fixed plan, the analyst said, so formally recording it in the valuation analysis "seems premature at the moment".

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