That wasn’t meant to be. After all the noise surrounding Elon Musk’s tweet on August 7 announcing that he wanted to take Tesla private at $420, with funding “secured”, the tech billionaire reversed course.

On August 24, Musk said in a blog post that consultations revealed that most of Tesla’s existing shareholders opposed the move.

The company was also under the threat of lawsuits and a US Securities and Exchange Commission investigation due to Musk allegation that the deal is “secured”.

The new announcement didn’t really take analysts by surprise. According to Philippe Houchois, analyst at Jefferies, going private was always a very long shot since, “without scope to add leverage, going private would have required not just wide support from existing shareholders in order to limit new funding but also required accepting new shareholders with stakes potentially larger than Musk's.” It added that the targeted $420 price was also deemed too low by many bulls.

Tesla’s shares, already down nearly 15 percent from their level on August 7, initially dropped by more than 5 percent in European and premarket trading in New York. They later recovered, standing 2.8 percent lower at $314 by 8.30 ET.

Tesla’s shares tumbled after the announcement (Source Surperformance)

Despite all this, some analysts believe that there could be some benefit for Tesla. Ben Kallo, analyst at Baird, said that although investors should expect Tesla shares to come under pressure in the near term as they question the outcome of staying public, it expects "shares to appreciate over the intermediate term as the focus shifts back to fundamentals, which may be underappreciated.”

Kallo added that investors should now be able to refocus on fundamentals, as Tesla appears to have made “significant progress" on the Model 3 production ramp.