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Tesla falls as much as 6 percent, giving back gains prompted by Musk's tweet on going private

Citigroup downgrades Tesla's stock to a sell rating in light of the SEC lawsuit against CEO Elon Musk.

Shares of Tesla (TSLA) gave back all of the stock's gains from earlier this week, as uncertainty starts to weigh on CEO Elon Musk 's hopes of taking the company private.

The stock lost 6 percent by midday trading Thursday, falling below $346 before paring some losses to close at $352.45. That erases all gains prompted by a tweet on Tuesday in which Musk publicly floated the possibility of going private , sending shares up 11 percent.

Musk claimed the necessary funding to take the company private had been secured, but that claim has drawn scrutiny and skepticism in the days since reportedly spurring inquiries from the SEC .


The stock was down most of the day, and dipped more after a Bloomberg report that the SEC had been gathering information on Tesla prior to Tuesday. The agency had been looking into Tesla's public statements on production numbers and sales targets, the news site reported, and intensified its scrutiny after Tuesday's tweet.

With Thursday's dip, Tesla stock is up 13 percent in 2018 but flirting with correction territory, nearly 10 percent off its 52-week high.

Correction: This article has been revised to clarify that the Bloomberg report said the SEC had been gathering information on Tesla before Tuesday.