Tesla’s shares tumble on Elon Musk’s latest tweet

Written by Staff Writer, CNN The reaction of Tesla stock to Elon Musk’s latest tweet Tuesday may say more about the company’s current share price — which has tumbled 10% since he made an…

Tesla's shares tumble on Elon Musk's latest tweet

Written by Staff Writer, CNN

The reaction of Tesla stock to Elon Musk’s latest tweet Tuesday may say more about the company’s current share price — which has tumbled 10% since he made an unconventional proposal to take the electric automaker private — than about his ability to lead it.

The billionaire’s latest statement, retweeted more than 200,000 times by people who share it widely on social media, simply read: “Am considering taking Tesla private at $420. Funding secured.”

Am considering taking Tesla private at $420. Funding secured. — Elon Musk (@elonmusk) September 25, 2018

As investors were assessing the implications of that tweet for Tesla’s future, Mr. Musk, who founded the company in 2003, issued another, this time to his 61.7 million Twitter followers: “Am considering taking Tesla private at $420.”

Tesla briefly regained momentum following these tweets but as investors assessed the implications of those tweets, he issued another to his 61.7 million Twitter followers: “Am considering taking Tesla private at $420. Funding secured.”

This updated tweet was also retweeted more than 200,000 times.

Am considering taking Tesla private at $420. Funding secured. — Elon Musk (@elonmusk) September 25, 2018

Shares in Tesla hit $384 in early trading, according to CNBC, but soon plunged and were trading at $357 as of 9:16 a.m. ET, down more than 6% from the previous day. The stock has fallen 17% since Friday.

Mr. Musk’s resignation from the board of directors is cause for concern at Tesla according to an external spokeswoman for the company. “The company is in no immediate need of financial resources but as we have said before, Elon is one of the driving forces at Tesla and any business runs better with him at the helm,” she said in a statement provided to CNN.

On Monday, Morgan Stanley downgraded the company’s rating to equal weight from overweight and maintained its $320 price target, citing growing concerns about Tesla’s ability to sell enough Model 3 cars. The firm believes the vehicle can reach a target of 500,000 per year by the end of 2019 but that target could be hit sooner, Morgan Stanley analyst Adam Jonas wrote in a note to clients.

The Wall Street Journal, citing people familiar with the matter, reported Tuesday that Mr. Musk and Tesla might unveil a new vehicle at the annual Consumer Electronics Show next year.

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