The subsequent share drop erased around $13 billion from Tesla's market value and nearly $3 billion from the value of Musk's stake.
The dollar amount of Tesla shares sold short dropped by 16 per cent, while that for Amazon climbed by 32 per cent
Musk wrote that the company would be investigating the matter this week, adding that Tesla needed to determine if the person was acting alone or in concert with "any outside organizations."
Musk tweeted on Friday that the Model 3, which is slated to go into production in late 2017, will sell at an average price of $42,000.
Electric cars were all the rage five years ago.New car companies were springing up all over the place, promising a futuristic liberation from the internal-combustion engine.