Elon Musk’s run-in with the Securities and Exchange Commission may cost Tesla Inc. almost half its market capitalization, Barclays analyst Brian Johnson said, adding that the company’s stock has about US$130 of “Musk premium” per share that could dissipate.

“Should the SEC be successful in barring Mr. Musk from serving as an officer or director, investors would focus back on the value of Tesla as a niche automaker, rather than a founder-led likely disrupter of multiple industries,” Johnson wrote in a note to clients. He holds the equivalent of a sell rating on the stock, with a price target of US$210, below the average price target of US$301 according to data compiled by Bloomberg.

Tesla shares sank 12 per cent pre-market, trading near US$270 as of 8:23 a.m. in New York, after the SEC sued Musk on Thursday, alleging that the electric vehicle maker’s chief executive officer misled investors through his “taking private” tweet on August 7. The commission could bar Musk from serving as an officer of a public company.