Since Elon Musk’s tweet about taking Tesla private, shares in the electric car company have been volatile.
Shares in the group have dropped by about a fifth since August 7 when Musk released the tweet saying: “Am considering taking Tesla private at $420. Funding secured.”
Ryan Brinkman from JP Morgan said: “Tesla does appear to be exploring a going private transaction, but we now believe that such a process appears much less developed than we had earlier presumed (more along the lines of high-level intention).”
Whilst the bank initially raised the share price after Musk’s tweet, JP Morgan has cut its price target from $308 to $195.
“Our interpretation of subsequent events leads us to believe that funding was not secured for a going private transaction, nor was there any formal proposal,” said Brinkman.
“Formal incorporation into our valuation analysis seems premature at this time,” he added.
Tesla shares touched a three-month low of $285 in premarket trading Monday before recovering.
Earlier this month, Musk opened up in an interview with the New York Times, revealing the heavy pressures of his role at the company.
“This past year has been the most difficult and painful year of my career,” he said.
For the first quarter of this year, Tesla posted a record $709.6 million net loss.
“It’s high time we became profitable,” said Musk, at the time of results. “The truth is you’re not a real company until you are, frankly. That’s our focus right now.”
Shares in the group (NASDAQ: TSLA) are currently up 0.96 percent at 308,44 (1059 GMT).