Belief in the Model 3 had helped propel Tesla's share price 62 percent higher in the 1-1/2 years after the Palo Alto, California-based company unveiled it in March 2016.
Tesla investors are likely to suffer a lengthy hangover from Elon Musk's aborted offer to take the company private, Wall Street has warned.
In the blog post, published without the fanfare of his earlier tweets, Musk said it had become clear to him that, while "there was more than enough funding" to take Tesla private, doing so would estrange numerous company's existing shareholders (and most ardent supporters of the company).
"We are hopeful that ... the past 17 days will lead the Board down the path to bringing on a more operational CEO or at a minimum a COO", Cowen and Co analysts said in a note to clients.
Several analysts suggested that Mr Musk could be replaced as chief executive or that a chief operating officer may be hired to support him.More news: YouTuber McSkillet among three dead in United States 'wrong way' crash
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"While we are always looking for highly talented executives (...) there is no active COO search", a spokesman said by email. The Saudi Arabian sovereign wealth funds Musk said he was talking to had "shown no interest" in buying out Tesla according to Reuters. Musk's plans for Tesla are reportedly being scrutinized by the SEC, especially in the "funding secured" part of his shock announcement on Twitter.
Tesla had $2.78 billion in cash at the end of the second quarter, after a record $718 million loss.
One of Tesla's biggest challenges is ramping up production of its latest vehicle, the Model 3, which is critical to its profitability goals.
"Additionally, a number of institutional shareholders have explained that they have internal compliance issues that limit how much they can invest in a private company". Coffee noted that the SEC may feel as though these disclosures were deficient.
Musk was "suspicious" of other automakers and believed they wanted a share of what he refers to as the "Tesla halo". Musk said earlier this month that the company's "default plan" would be to fund that expansion by borrowing money from Chinese banks.