Tesla has given up all its share price gains that followed Elon Musk’s tweet on Tuesday saying that he was considering taking the electric carmaker private.

Shares were down 6.3 per cent at $347.06 at pixel time in New York on Thursday. That took them past the level of about $356.82 they sat at before Mr Musk’s controversial August 7 message on the social media platform that he was “considering taking Tesla private at $420” and that funding had been “secured”.

About an hour before that tweet, the Financial Times reported Saudi Arabia’s sovereign wealth fund had taken a $2bn stake in Tesla, prompting shares to power higher from a level of $342.34 just beforehand.

On Tuesday, the confluence of Saudi investment and privatisation tweets pushed shares 11 per cent higher at the close to an 11-month high.

Mr Musk fired off a series of tweets and then an email to employees later that day saying being private would create “the environment for Tesla to operate best”, freed from “wild swings in our stock price that can be a major distraction” for everyone working at the company. But questions have swirled about whether funding had been secured and from whom, as well as whether the incident would draw scrutiny from regulators.

A statement from six of Tesla’s directors on Wednesday morning said Mr Musk had “opened a discussion with the board about taking the company private” last week.

Get alerts on Tesla Inc when a new story is published

Copyright The Financial Times Limited 2019. All rights reserved.
Reuse this content (opens in new window)

Comments have not been enabled for this article.

Follow the topics in this article