Tesla slides further as pressure on Musk builds

SHARES in Elon Musk’s Tesla touched three-month lows after JP Morgan Chase slashed its target price for the electric car maker.

The bank’s analysts said Musk’s plan to take the company private was less advanced than he appeared to suggest previously, raising doubts about whether a deal could be done.

Their comments came as Saudi Arabia’s sovereign wealth fund – which Musk had suggested was the financial backer of his buyout proposal – was reported to have struck a separate agreement with a rival electric car company.

Tesla shares plunged by more than 4pc and briefly bottomed out at $289 – a low not seen since May.

JP Morgan said it expected the stock to continue sinking, in a sign of growing scepticism on Wall Street about Musk’s plans.

The bank cut its price target to $195, from $308.

Musk had previously tweeted that he had ‘funding secured’ for his buyout plan of the electric car firm, but later clarified there was no formal proposal.

With the 47- year- old’s leadership under intense scrutiny, his tweets have triggered a probe by financial regulators over whether he misled investors.