Tesla’s shares fell almost 5 per cent overnight, making it one of the worst performing stocks on Wall Street's Nasdaq index after large gains earlier in the week.
The fall comes after boss Elon Musk considered taking the company private on Twitter despite analysts doubting his ability to secure the financial backing to complete a going-private deal.
Mr Musk could potentially face investor lawsuits if it was proven he did not actually have secure financing at the time of his tweet, sparking short sellers to bet on the fall of Telsa shares.
Ratings agency Moody's has suggested that if Tesla becomes a private company, it would be negative for the electric carmaker's credit outlook.