Shares in Tesla fell more than 3% in intraday trade on Monday after the electric carmaker abandoned a plan to go private, with some analysts suggesting it should either replace CEO Elon Musk or appoint another strong senior manager. The billionaire entrepreneur said in a blog post late on Friday that consultations, done with the help of Goldman Sachs and Morgan Stanley, had shown most of Tesla’s existing shareholders opposed the deal that he proposed on Twitter three weeks ago to widespread shock on Wall Street. Tesla’s shares, already down nearly 15% from a peak on August 7 when Musk tweeted that he had "funding secured" for a buyout at $420 a share, initially fell more than 5% in European and premarket trading in New York. They recovered, however, to stand 3.6% lower at $311.17 by mid-morning in New York.

A series of notes from Wall Street analysts questioned Musk’s credibility in the face of a possible investigation by the US Securities and Exchange Commission into the fact...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, Morningstar financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00.