UPDATE: Tesla stock slides 7% premarket as JP Morgan slashes price target

Tesla Inc. shares TSLA, -8.93% slid 7% in premarket trade Monday, after JP Morgan analysts slashed their stock price target to $195 from $308, putting it back where it stood on Aug. 8, before Chief Executive Elon Musk’s now famous going-private tweet. The analysts had boosted their target after that tweet, which said Musk was considering taking the company private at $420, with "funding secured." "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," the analysts wrote. Specifically, they noted that Musk after saying that the Saudi Arabian sovereign wealth fund had expressed support for such a deal, had then said the Saudis were seeking additional information, including on how a going-private transaction would be structured, suggesting a deal "is potentially far from even being formally proposed, which is different from our understanding on August 8 which was based on Mr. Musk’s statement on Twitter that, "Only reason why this is not certain is that it’s contingent on a shareholder vote," JP Morgan analysts wrote. Tesla has become the subject of lawsuits from short and long sellers because of the volatility in the stock since the tweet. Tesla shares have fallen 1.9% in 2018 through Friday, while the S&P 500 SPX, +0.33% has gained 6.6%.

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