Now the real work begins.
Two days after a choice investment from Saudi Arabia and a surprise tweet from Elon Musk sent Tesla’s stock skyrocketing, shares are coming back down to earth today as questions begin to emerge about the viability of Musk’s possible plan to take the company private.
After hitting a high of $367, Tesla’s stock was down almost 6% in late-day trading. That means the company has lost almost all of the value created in the wake of news on Tuesday that Tesla could soon go private–a move Musk says will alleviate the grind of quarterly earnings reports and short-term goals.
But how the move would work remains a bit of a mystery. As Bloomberg wrote earlier today, the company hasn’t said who would front the estimated $60 billion needed to take Tesla private. Analysts who cover Tesla are confused, and investors probably are, too. Meanwhile, the SEC is said to be looking into Musk’s tweet, because announcing a big stock-moving corporate move on Twitter is unconventional, to say the least.