During early trading today, the share price of Tesla rose by as much as five percent in after Morgan Stanley suggested at its possible involvement in negotiations surrounding a transaction to take the firm private.
Today, the brokerage removed its rating and suspended the equity coverage on Tesla. IT signalled a possible move to join Goldman Sachs as one of the advisers to Tesla on the said deal.
The website of the bank revealed that Tesla had been moved from “equal weight” to “not rated.” No further details were provided regarding the modifications. a similar move was conducted by Goldman Sachs last week, shortly before the bank confirmed its connection to the carmaker.
The share price of Tesla grew to a high of $324.79, counteracting the almost three-month low that it experienced yesterday after JP Morgan reduced its target price for the firm from $308 to $195. Ryan Brinkman, an analyst, said that it no longer believed the statement of Elon Musk, the Tesla boss, which said that he had “secured” funding for such a transaction.
Morgan Stanley did not release a comment regarding the move.
The news appears after the Tesla CEO sent out a now infamous tweet on the 7th August saying that he is considering taking the electric car company private at $420 per share. He also said that funding was already secured. He later suggested that such funding would come from the Saudi Arabian Public Investment Fund.
After the tweet, the share price of Tesla immediately increased by as much as 10 percent. However, it lost those gains soon after and was down by almost 17 percent since the 8th of August at the close last Monday.
The tweet now sits at the centre of numerous lawsuits and an investigation was launched by the markets regulator of the United States into whether the Tesla billionaire planned the ensuing share price fiasco in an attempt to hurt short-sellers.
Meanwhile, last night, Musk has deleted his Instagram account amid a surprisingly quiet period on Twitter for the tech entrepreneur.
Last week, it was revealed that the board of Tesla had tried to place Musk under tweet arrest in an attempt to prevent him from causing further conflicts with the market or affecting the ongoing investigations.