Tesla shares have dropped nearly three per cent as investors get to grips with Musk's U-turn over plans to take the company private.
Tesla's shares were valued at $314.77 (£244) each, while in Germany they saw a more dramatic five per cent drop.
Earlier this month Tesla's chief executive Elon Musk spooked investors when he announced on Twitter that he was considering taking the company private to help it avoid "wild swings in our stock price that can be a major distraction for everyone working at Tesla".
The debate quickly centred on whether Musk had broken any laws in disclosing that the company had "secured funding" for its plans, which would have valued Tesla shares at $420. The US Securities and Exchange Commission (SEC) has issued a subpoena on Tesla over the matter.
However, on Friday Tesla issued a fresh statement which said that Musk had had a change of heart. "Elon communicated to the board that after having done this work and considered all factors, he believes the better path is to no longer pursue a transaction for taking Tesla private," it said.
"After discussing this, we dissolved the special committee. The board and the entire company remain focused on ensuring Tesla’s operational success, and we fully support Elon as he continues to lead the company moving forward."
Read more: Elon Musk: Tesla to remain a public company