Tesla Tumbles, Erases 'Earnings' Gains As Going Private Chaos Turns "Ominous"

In the aftermath of Musk's bizarre, emotional tell all in the NYT, as Tesla’s “going private” chaos turns more "ominous", and as the SEC continues to get ever closer, while new lawsuits for market manipulation are filed daily by disgusted shorts against Elon Musk, investors are taking a step back, sending Tesla stock tumbling...

This morning TSLA plunged as low as $306, down 9% and far below the "going private" price of $420 as the narrative so carefully sculpted by Musk for years appears to finally be crumbling.

Meanwhile, as Bloomberg notes, the debate over the company’s Model 3 car rages on. On Thursday Evercore ISI analysts said production of the sedan was continuing unabated in the midst of the going-private confusion, and Tesla seemed “well on the way” to achieving a steady weekly production rate of 5,000 to 6,000 units per week. The Bloomberg tracker for Model 3 also shows a similar uptick.

However, on Friday, UBS analyst Colin Langan said the basic Model 3, which was once expected to be priced at $35,000, would lose about $6,000 per car.

Understandably, the cash burning company is currently is not offering the base model on its website.