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Tesla Shares Drop Again After Musk's Latest Tweet

Tesla Shares Drop Again After Musk's Latest Tweet

Musk said he had plans to take Tesla private at a price of US$420 per share.

Funding would be a welcome new lease on life for Lucid, which had been trying to raise a series D round of United States $700 million a year ago to get a plant up and running in Arizona.

Shares of Tesla were up marginally at $309.50 in trading before the bell on Tuesday.

During an interview with popular YouTuber Marques Brownlee of the channel MKBHD, Tesla CEO Elon Musk claimed that the electric auto manufacturer could produce a vehicle at the $25,000 price point in the next three years.

The bearish analysis followed a report on Sunday that Saudi Arabia's sovereign wealth fund - the very investor that Musk has described as a linchpin of his plan to take Tesla private - was considering buying a stake in another U.S. electric-car company.

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Analysts from the USA bank had upped its forecast from $198 to $308 after a roughly $100 surge in Tesla stock following Musk's tweets on August 7 and the note on Monday was the latest evidence of scepticism about the deal on Wall Street.

In an interview with The New York Times last week, Musk said that the last year had "been the most hard and painful year of my career" as he struggled to meet Tesla's production targets.

Based on the edges of Silicon Valley in Newark, California, Lucid Motors was founded in 2007 as Atieva by Bernard Tse, a former Tesla vice president and board member, and Sam Weng, a former exec at Oracle Corp and Redback Networks.

A person with direct knowledge of the matter told Reuters last week that the SEC has opened an inquiry related to Musk's tweets on the buyout and the billionaire is also facing a class action suite from investors who lost money in the share moves.

He later said that meetings with Saudi Arabia's sovereign wealth fund had given him confidence to announce the news. While Musk claimed that funding had been secured for such a deal, sources close to PIF assert that no commitments have been made. Since Musk's personal style and vision is so closely tied to that of Tesla, Carson added, if the chief exec seems "unstable" in an interview or on social media, "that is really concerning" for shareholders. Lucid's website is taking refundable $2 500 deposits for the vehicles it plans to eventually sell.