Shares in electric carmaker Tesla continued falling on Monday. The company has lost a third of its value in two weeks since CEO Elon Musk announced privatization plans. Analysts say Musk hasnt secured the funding.
Tesla's stock price fell to $282 per share during pre-trading on Monday. Company stock peaked at $379 per share after Musk's tweet about taking Tesla private.
A negative report by JP Morgan is adding pressure on the companys stock. The bank predicts that Teslas stock will slide about 35 percent this year.
“We are reverting to valuing Tesla shares on the basis of fundamentals alone, which entails a $113 reduction in our price target back to the $195 level where it stood prior to our August 8 note,” analyst Ryan Brinkman said in a new analysis. The previous forecast was based on the belief that Musk had secured funding to take Tesla private.
“Our interpretation of subsequent events leads us to believe that funding was not secured for a going private transaction, nor was there any formal proposal," Brinkman said in his latest note.
“The revelation that the Saudi fund is subsequently asking Tesla for details of how the company would be taken private suggests to us that any deal is potentially far from even being formally proposed, which is different from our understanding on August 8 which was based on Mr. Musk's statement on Twitter," Brinkman added.
Last week, Musks emotional interview with the New York Times also triggered a sell-off in Teslas stock. He told the newspaper that he's overwhelmed by the job, has been working up to 120 hours per week and is tired of short-sellers — investors betting against the company.
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