Close
Date TimeSeptember 28, 2018
VoiceTesla's stock is falling as analysts voice concern about the negative effects from SEC's lawsuit against CEO Elon Musk.
"The SEC civil action may lead to Musk's exit from Tesla (either permanently or temporarily) and the Musk premium in the shares dissipating," Barclays analyst Brian Johnson says.
Tesla shares plunge as Wall Street throws in towel, saying Musk departure could cost stock $130
Wall Street is buzzing over SEC's civil action against Tesla CEO Elon Musk, predicting significant negative ramifications for the electric car market due to the action.
Shares of the automaker fell 13.9 percent on Friday, their worst day since November 2013.
The Securities and Exchange Commission sued Musk on Thursday, alleging for fraud. The complaint says Musk issued "false and misleading" statements and failed to properly notify regulators of material company events. Musk called the SEC's allegations "unjustified" and said he "never compromised" his integrity.
Barclays believes if Musk is forced to leave because of the SEC action, it will be weigh on Tesla's stock.
"The SEC civil action may lead to Musk's exit from Tesla (either permanently or temporarily) and the Musk premium in the shares dissipating," analyst Brian Johnson said in a note to clients Friday. "Tesla shares have ~$130 of Musk premium for future success that might dissipate."
Tesla's stock closed at $307.52 Thursday.
Johnson reiterated his underweight rating and $210 price target for Tesla shares.
One Wall Street firm is concerned the controversy about the lawsuit will hurt demand for Tesla's cars.
"We see the potential for negative sentiment to impact demand and employee morale," Morgan Stanley analyst Adam Jonas said in an investor note. "In our view, this is particularly a risk if the situation is not resolved relatively quickly."
Jonas reiterated his equal-weight rating and $291 price target for Tesla shares.
J.P. Morgan also thinks the news will affect the company's ability to raise financing.
"We are concerned that decreased confidence in Tesla on the part of investors may impact the company's ability to raise capital on amenable terms," analyst Ryan Brinkman said in a note to clients Friday.
Brinkman reaffirmed his underweight rating and $195 Dec. 2018 price target for the company's shares.
Citigroup also downgraded the stock to a sell rating from neutral.
"There's little question that Mr. Musk's departure would likely cause harm to Tesla's brand, stakeholder confidence and fundraising," the note said. "If Mr. Musk ends up staying on, the reputational harm from this might still prevent the stock from immediately returning to 'normal.'"

Related Stories
Leaked email from Elon Musk suggests Tesla might set a new quarterly record for deliveriesLeaked email from Elon Musk suggests Tesla might set a new quarterly record for deliveries
SpaceX launches another 60 Starlink satellites while setting two rocket reuse recordsSpaceX launches another 60 Starlink satellites while setting two rocket reuse records
UK Weather: Flood Warnings Issued As More Heavy Rain ExpectedUK Weather: Flood Warnings Issued As More Heavy Rain Expected
Tesla stock soars as surprise profit answers skepticsTesla stock soars as surprise profit answers skeptics
Merkel Cheers VW’s Electric Push Amid Growing Climate CritiqueMerkel Cheers VW’s Electric Push Amid Growing Climate Critique
Latest News
Gloucester suffer Champions Cup loss to Toulouse despite Joe Simpson’s triesGloucester suffer Champions Cup loss to Toulouse despite Joe Simpson’s tries
Alexander Zverev beats Daniil Medvedev at ATP World Tour Finals – as it happenedAlexander Zverev beats Daniil Medvedev at ATP World Tour Finals – as it happened
England’s Euro 2020 side takes shape but Southgate will keep options open | David HytnerEngland’s Euro 2020 side takes shape but Southgate will keep options open | David Hytner
Rafael Nadal out despite epic win over Stefanos TsitsipasRafael Nadal out despite epic win over Stefanos Tsitsipas
Alex Oxlade-Chamberlain feels he is almost back to his best after injuryAlex Oxlade-Chamberlain feels he is almost back to his best after injury
Ten key themes as World Cup says sayonara to Japan | Paul ReesTen key themes as World Cup says sayonara to Japan | Paul Rees
Reese Witherspoon admits why she didnt act on more episodes of Friends and more news from the weekReese Witherspoon admits why she didn't act on more episodes of 'Friends' and more news from the week
CBS Studios’ James Comey Series Casts Its ObamaCBS Studios’ James Comey Series Casts Its Obama
Life Worse Under The Tories But Johnson Will Sort Brexit Logjam, Undecided Voters SayLife Worse Under The Tories But Johnson Will Sort Brexit Logjam, Undecided Voters Say
In These Divisive Times, One Thing Voters Agree On – Brexit Is BoringIn These Divisive Times, One Thing Voters Agree On – Brexit Is Boring
Leaders
Donald-TrumpDonald Trump
45th President of the United States of America
Mike-PenceMike Pence
Vice President of the United States
Boris-JohnsonBoris Johnson
British Prime Minister
Angela-MerkelAngela Merkel
Chancellor of Germany
Emmanuel-MacronEmmanuel Macron
President of France
Justin-TrudeauJustin Trudeau
Prime Minister of Canada
Nancy-PelosiNancy Pelosi
Speaker of the United States House of Representatives
Barack-ObamaBarack Obama
44th U.S. President
Theresa-MayTheresa May
Member of Parliament of the United Kingdom
Vladimir-PutinVladimir Putin
Russian President
Shinzo-AbeShinzō Abe
Prime Minister of Japan
Related Stories
Leaked email from Elon Musk suggests Tesla might set a new quarterly record for deliveriesLeaked email from Elon Musk suggests Tesla might set a new quarterly record for deliveries
SpaceX launches another 60 Starlink satellites while setting two rocket reuse recordsSpaceX launches another 60 Starlink satellites while setting two rocket reuse records
UK Weather: Flood Warnings Issued As More Heavy Rain ExpectedUK Weather: Flood Warnings Issued As More Heavy Rain Expected
Tesla stock soars as surprise profit answers skepticsTesla stock soars as surprise profit answers skeptics
Merkel Cheers VW’s Electric Push Amid Growing Climate CritiqueMerkel Cheers VW’s Electric Push Amid Growing Climate Critique
Latest News
Gloucester suffer Champions Cup loss to Toulouse despite Joe Simpson’s triesGloucester suffer Champions Cup loss to Toulouse despite Joe Simpson’s tries
Alexander Zverev beats Daniil Medvedev at ATP World Tour Finals – as it happenedAlexander Zverev beats Daniil Medvedev at ATP World Tour Finals – as it happened
England’s Euro 2020 side takes shape but Southgate will keep options open | David HytnerEngland’s Euro 2020 side takes shape but Southgate will keep options open | David Hytner
Rafael Nadal out despite epic win over Stefanos TsitsipasRafael Nadal out despite epic win over Stefanos Tsitsipas
Alex Oxlade-Chamberlain feels he is almost back to his best after injuryAlex Oxlade-Chamberlain feels he is almost back to his best after injury
Ten key themes as World Cup says sayonara to Japan | Paul ReesTen key themes as World Cup says sayonara to Japan | Paul Rees
Reese Witherspoon admits why she didnt act on more episodes of Friends and more news from the weekReese Witherspoon admits why she didn't act on more episodes of 'Friends' and more news from the week
CBS Studios’ James Comey Series Casts Its ObamaCBS Studios’ James Comey Series Casts Its Obama
Life Worse Under The Tories But Johnson Will Sort Brexit Logjam, Undecided Voters SayLife Worse Under The Tories But Johnson Will Sort Brexit Logjam, Undecided Voters Say
In These Divisive Times, One Thing Voters Agree On – Brexit Is BoringIn These Divisive Times, One Thing Voters Agree On – Brexit Is Boring
Leaders
Donald-TrumpDonald Trump
45th President of the United States of America
Mike-PenceMike Pence
Vice President of the United States
Boris-JohnsonBoris Johnson
British Prime Minister
Angela-MerkelAngela Merkel
Chancellor of Germany
Emmanuel-MacronEmmanuel Macron
President of France
Justin-TrudeauJustin Trudeau
Prime Minister of Canada
Nancy-PelosiNancy Pelosi
Speaker of the United States House of Representatives
Barack-ObamaBarack Obama
44th U.S. President
Theresa-MayTheresa May
Member of Parliament of the United Kingdom
Vladimir-PutinVladimir Putin
Russian President
Shinzo-AbeShinzō Abe
Prime Minister of Japan
Facebook Data Breach -- What To Do Next
Rod Stewart Claims BBC Would Not Allow Him To Perform 'The Killing Of Georgie' On Chris Evans' Breakfast Show
Arnautovic seals victory as West Ham compound Manchester United gloom
Wow! Asteroid Ryugu's Rubbly Surface Pops in Best-Ever Photo
Jefferson Airplane Co-Founder Marty Balin Dead at 76
LSU basketball player Wayde Sims shot to death
Tim Allen & Nancy Travis Talk What's Changed, What's the Same in Fox's 'Last Man Standing'
At least 48 killed after series of quakes and a tsunami hit Indonesia
Sir John Major Brands Leave Campaign A 'Fantasy Case' In Call For Second Brexit Vote
Graham Norton slates the 'stupid, short-sighted' celebs who avoid tax
'Wizards of Waverly Place' Star David Henrie Charged in Airport Gun Case
Callum Smith knocks out George Groves to land super-middleweight crown
Hillary Clinton Makes a Surprising (and Hilarious) Cameo in Premiere of Murphy Brown Revival
Ariana Grande Dropped Out of 'SNL' Premiere for 'Emotional Reasons'
Social media star, a former 'Miss Baghdad,' shot dead
The Senate Republicans’ Less-Than-Human Treatment of Christine Blasey Ford
America is Going Back to the Moon—Thanks to Donald Trump
Lady Gaga Tips the Scales in Bradley Cooper's 'A Star Is Born'
Mark Zuckerberg's Facebook page will be deleted on Sunday, says hacker
Jeff Flake: the man who may hold Kavanaugh's future in his hands
McIlroy struggles on opening morning as United States draw first blood
Naomi Campbell Says A Lot By Saying Very Little About Kendall Jenner
SEC Sues Elon Musk for Fraud, Seeks Removal From Tesla
American Bar Association calls for FBI investigation into Kavanaugh allegations
Jared Goff scorches Vikings with five touchdowns as Rams win passing duel
Hear Lil Wayne's Long-Awaited 'Tha Carter V'
Watch Lady Gaga, Bradley Cooper Perform Striking 'A Star is Born' Duet 'Shallow'
Partisan tensions: Republican chair interrupts Feinstein
Postman Pat creator John Cunliffe dies
Rachel Mitchell: who is the prosecutor grilling Christine Blasey Ford?
Brett Kavanaugh Accuser Christine Blasey Ford Testifies At Historic Senate Hearing
'Oumuamua Isn't from Our Solar System. Now We May Know Which Star It Came From
How Cardi B Became the Most Exciting Fashion Week Star
Big Brother 20 season finale recap: A winner is crowned and surprises are abound
Review: ABC's 'A Million Little Things' is the pinnacle of feel-bad feel-good TV
Lewis Hamilton: Mercedes boss makes Russian Grand Prix vow over title battle
Dull 'Dark Phoenix' Trailer Takes A Huge Risk With The 'X-Men' Series
Jennifer Lopez Flexes Her Muscles and Shows 'Superwoman' Strength in New Photo
Russian law student fed up with 'manspreading' allegedly dumps bleach on passengers in viral video
Kelly Bryant, Clemson QB, will transfer after losing starting job
Julie Swetnick Is Third Woman to Accuse Brett Kavanaugh of Sexual Misconduct
Meghan closes a car door and some people can't handle it
Dunkin Donuts is changing its name
José Mourinho and Paul Pogba filmed in apparent training ground clash
Silent Opportunity Mars Rover Spotted from Space
BTS Shows Jimmy Fallon Their Best Video Game Moves In Epic Fortnite Dance Challenge
'This Is Us' recap: Season 3 premiere is half frustration, half great
Royal Mail: Stop putting crisp packets in post boxes
Labour MP Laura Smith Calls For First General Strike Since 1926 To Bring Down The Government
The ‘Breaking Bad’ scene that still makes Bryan Cranston tear up
Donald Trump Just Got Laughed At By The Entire United Nations
Emily Thornberry Stays Silent Over Online Attacks 'To Avoid Putting Young Women Off Politics'
Bill Cosby sentenced to three to 10 years in prison for sexual assault
Elon Musk Says a Mars Base Could Happen by 2028
Listen to Lady Gaga's A Star Is Born Ballad 'Is That Alright?'
New Zealand's 'first baby' makes UN history at General Assembly
'The Apprentice' 2018 Contestants Revealed: Meet The Candidates Vying For Lord Sugar's Investment
Michael Kors buys Versace in $2.1bn deal
It's National Voter Registration Day: How to make your voice heard
Prince Harry Doting On Meghan Markle More Than Ever — The Sweet Ways He Makes Her Feel Spoiled
Fortnite season 6 skins release, Halloween 2018 update and map leaks
Patrick Mahomes lights up Steelers as Chiefs win shootout
Luka Modric and Marta win Fifa player of the year awards in London
This Is the Secret Behind Meghan Markle's Super Straight Hair Today
Amber Guyger, Dallas Officer Who Killed Botham Jean in His Home, Is Fired
Rod Rosenstein, deputy attorney general, to meet Trump amid resignation reports
Selena Gomez Reveals You 'Can Never Forget Someone' As Justin Bieber & Hailey Baldwin Plan Wedding
Bill Cosby sentencing hearing caps fall from grace for 'America's Dad'
‘Transformers’ spin-off ‘Bumblebee’ teaser features Optimus Prime (VIDEO)
Metallica announce WorldWired tour in UK and Europe: How to get tickets
John McDonnell Says Second Referendum Would Not Include Option To Remain In The EU
The Bodyguard divides opinion with 'racist' twist
British woman jailed in Egypt over illegal painkillers loses appeal
Tiger Woods holds back tears before claiming Tour Championship
Labour back second Brexit vote if there's no general election
Patriots lack urgency once again as questions mount
‘Insecure’ shows how hard it is for a black girl to find love
Jennifer Lopez Parties With Selena Gomez and Other Top Female Stars Backstage at Her Show
49ers Breida, Sherman leave with leg injuries amid Chiefs onslaught
Bills rookie QB Josh Allen hurdles Vikings as part of shocking start
Lacazette strikes as controversial goal puts gloss on Arsenal win over Everton
Al Pacino’s new girlfriend is half his age
Jennifer Garner Driving a Tractor Is the Best Way to Ring in the First Day of Fall
Sarah Hyland Reveals the 'Sentimental' Gift Wells Adams Got Her for Their 1-Year Anniversary
5 Highlights From Queen Elizabeth II Documentary That Features Meghan Markle and Prince Harry
OPEC, Russia rebuff Trump's call for immediate boost to oil output
Do the Democrats Have a Post-Kavanaugh, Post-Midterm Game Plan?
‘Strictly Come Dancing’ First Show Sees Faye Tozer And Ashley Roberts Top The Leaderboard, But Susannah Constantine Is Labelled A ‘Car Crash’
Peter: Why I'm rooting for Tiger Woods to win Tour Championship
Death Stranding's TGS Trailer Has A Cool New Character Voiced By Troy Baker
Elon Musk just gave the most revealing look yet at the rocket ship SpaceX is building to fly to the moon and Mars
Ariana Grande Promises 'Everything Will Be Okay' as She Takes 'Much Needed Time to Heal'
Selena Gomez Took Our Favorite Brunch Outfit and Gave It an '80s Twist
Nicki Minaj and Cardi B Are Both in Milan for Fashion Week Following NYC Fight
Chas and Dave singer Chas Hodges dies aged 74
No. 7 Stanford rallies for 38-31 OT win over No. 20 Oregon
Mike Ashley to close three House of Fraser stores
Labour To Train Members In Special Campaign Skills As Jeremy Corbyn Pushes For Snap Election
Justin Theroux Breaks Silence on Jennifer Aniston Split: 'It Was Heartbreaking' Yet 'Gentle'
Maniac review – Jonah Hill and Emma Stone hit career highs in NYC dystopia
Believers, skeptics welcome to visit Nebraska’s Bigfoot Museum
Gunmen kill at least 25 in attack on annual military parade in Iran
Goodbye, summer: Fall equinox coming Saturday, marking the first day of autumn
Sir Alex Ferguson makes Old Trafford return
Telltale Games Begins 'Majority Studio Closure'
Jeremy Hunt: Burmese generals must face justice over Rohingya
How USC and Washington State match up
Tiffany Haddish Would Rather Snuggle With a Blanket Than a Man
Addison Russell's ex-wife accuses Cubs shortstop of physical mistreatment in blog post
Report: Deputy AG Rod Rosenstein discussed using 25th Amendment to remove Trump
'Joker' Director Reveals First Look at Joaquin Phoenix in Makeup
NASA's New Planet-Hunting Telescope Spots Its Second Possible World Already
Prince Harry Pulled a Hilariously Mischievous Move at His Wife's Cookbook Party
Rap mogul Suge Knight faces 28 years in prison after admitting manslaughter
Theresa May demands respect from EU in Brexit negotiations
Watch Google's beautiful tribute to Mister Rogers
Amazing footage shows a net being shot through outer space to clean up dangerous space debris
Meghan Markle's Mom Doria Ragland in Attendance as She Makes First Speech as Duchess of Sussex
Michael Cohen provided 'critical information' to Robert Mueller, his attorney says
Wolf Alice are worthy winners – but the Mercury prize must think bigger
The House With a Clock in Its Walls is not exactly time well spent
Tiger Woods fires a five-under 65 to share East Lake lead with Rickie Fowler
Browns win their first game since 2016 as Mayfield shines on debut
Jane Fonda ‘hates’ that she felt she had to get plastic surgery
Maryland shooting suspect in critical condition
‘Veronica Mars’ revival ordered to series at Hulu
Kanye West slams Nick Cannon, Drake and Tyson Beckford for talking about Kim
Macron urges EU leaders to stand firm against Theresa May
Sophia Loren in pictures: Look at beautiful Sophia Loren who turns 84 today
Police: Orlando-Melbourne International Airport back open on lockdown
Chris Evans' Wife Natasha Shishmanian Has Given Birth To Twins
James Bond 25: True Detective's Cary Fukunaga named as director
SpaceX's New BFR Spaceship Really Does Look Like Tintin's Moon Rocket
Khloé Kardashian Is Moving Back to Cleveland for Tristan Thompson's NBA Season: 'It's Hard'
'America's Got Talent': Season 13 champ crowned during two-hour finale
Alibaba's Jack Ma says US-China trade war ends 1 million US jobs promise: Xinhua
UFC Fighter Jon Jones Gets 15-Month Suspension, But Could Return Late October
Hailey Baldwin Calls Engagement to Justin Bieber the Most 'OMG Moment of My Life'
Tilray stock highs make it most valuable pot company
Maroon 5 to Perform at Super Bowl Halftime
Jimmy Butler Trade Rumors: T-Wolves Star Requests Deal, Gives Shortlist of Teams
Diogo Dalot profile: Who is Man Utd teenager in line for debut against Young Boys?
Storm Ali: woman dies in Ireland after caravan blown off cliff
Palestinian Attempts Jerusalem Stabbing on Yom Kippur
Eagles sign Jordan Matthews, place Mike Wallace on injured reserve
Kim Jong-un AGREES to dismantle nuclear complex and key missile facilities
Kanye West says he’s moving to Chicago
Justin Bieber Serenades Hailey Baldwin in the Streets of London
Sesame Street disputes writer's claim that Bert and Ernie are gay
Sony's PlayStation Classic will fit in your hand and cost you $100
Denis Norden, TV presenter and comedy writer, dies aged 96
Julie Chen confirms exit from ‘The Talk’ after Les Moonves scandal
Why Penélope Cruz Would 'Love' to Continue Working With Ryan Murphy
Celia Barquin Arozamena Found Murdered On Iowa Golf Course
Trump, Poland's president meet at White House — live updates
Matias Vecino breaks Spurs hearts with injury-time winner for Inter
Matthew Rhys: Keri Russell would have punched me if I proposed at Emmys
Billy Joe Saunders charged with misconduct for ‘sickening’ video
Stormy Daniels: 'little girl from Baton Rouge' posing big problem for Trump
UK weather: Storm Ali brings danger to life warning with 80mph winds
Watch Brie Larson blast off as Marvel's newest hero in the first 'Captain Marvel' trailer
Emmy Winner Glenn Weiss Proposes Marriage Live Onstage
Elon Musk's SpaceX to send Japanese billionaire Yusaku Maezawa on journey around the moon
New Kingdom Hearts 3 Trailer, Cover Art Revealed
Primetime Emmys 2018: British Stars Including Claire Foy, Charlie Brooker And Thandie Newton Win Big
Matthew Rhys reflects on the 'terrifying' experience of giving an Emmy acceptance speech
Emmys 2018: Game of Thrones makes triumphant return on TV's biggest night
Mel B wants Katy Perry to join Spice Girls on tour
Nicki Minaj to release surprise ‘Bad Guy’ collection with Diesel
Casey Affleck: Ben is sobering up for Jennifer Garner and the kids
Watch Elon Musk announce SpaceX's first Moon passenger today at 6PM PT
We've Been Pronouncing Ariana Grande and Chrissy Teigen's Names Wrong This Whole Time
Mark Burnett, Tom Arnold brawl at pre-Emmys party days before Arnold's anti-Trump show debuts
iOS 12 review: the fixes are in
'Mary Poppins Returns' dazzles with new trailer
Meghan Markle's Half-Sister Samantha Markle Compares Prince Harry to a Hamster in Birthday Tweet
Soon-Yi Previn Breaks Silence on Woody Allen Sexual Assault Claims, Alleges Years of Abuse by Mia Farrow
Time Magazine Sold to Salesforce Founder Marc Benioff for $190 Million
Dallas Cowboys find offensive identity in crucial win over New York Giants
Macron under fire after telling young jobseeker to 'find work by crossing the road'
Typhoon Mangkhut lashes Hong Kong after killing 49 in the Philippines
Cardi B already joking about fight with Nicki Minaj
Carrie Underwood Reveals She Had 3 Past Miscarriages Before Current Pregnancy
Kanye West Looking to Launch New Film Production Company Called Half Beast
Katie Hopkins 'On Brink Of Bankruptcy' Following Libel Loss
Hamilton storms to pole in Singapore GP
‘UFO’ spotted onboard US Navy aircraft carrier, EXTRAORDINARY YouTube footage shows
Tiffany Haddish Says She Is Waiting for That Emmys Check
Kris Jenner Reveals if She'll Ever Get Married Again
Browns to release former Pro Bowl WR Josh Gordon
Canelo Álvarez edges Gennady Golovkin by majority decision in classic fight
Anna Kendrick Tells Stephen Colbert About the Time She Called Obama an 'A—hole' to His Face — Watch
'The X-Files' Actor Peter Donat Dies at 90
Barack Obama to speak at annual RFK gala
Matthew McConaughey, Camila Alves hit the dance floor at Cinema Society bash
The Year Prince Harry Shook the Royal Family--and What's Next for Him and Meghan Markle
Matthew Perry Is 'Going Home Finally' After Spending 3 Months in the Hospital: Source
Lukaku and Smalling strike as Manchester United end Watford’s streak
Syracuse QB Eric Dungey hurt in 1st half vs. FSU
Florida State to Honor Burt Reynolds with Helmet Decals
Close