Less than two weeks after Tesla shares soared after Elon Musk tweeted he was considering taking the company private for $420 per share, the company’s stock has fallen to its lowest point since early June.
Shares fell nearly 9% Friday and were down as much as 7% in pre-market trading Monday, as investors seem to have dwindling faith that Musk’s plan will come to fruition.
Adding to the uncertainty was a report Monday morning from J.P. Morgan saying it expects the company’s shares to fall precipitously for the rest of the year, as it does not believe Musk has, in fact, secured funding for privatization.
The firm dramatically cut its December price target for the automaker from $308 to $195.
That $308 figure was set on Aug. 8 after Musk’s Tweet.
“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,” wrote analyst Ryan Brinkman.
Tesla shares hit a high of $387.46 on Aug. 7 after Musk’s Tweet. As of Friday’s close, it has fallen 21% from that peak.
Musk revealed Friday in an interview with The New York Times that no one reviewed his Tweet about taking the company private, news that rattled investors. Short sellers in the company made $1 billion after the interview hit the street.