Tesla loses $126 bn value amid Elon Musk's Twitter deal funding concerns

On Tuesday as Chief Executive Officer of Tesla Elon Musk acquired the microblogging platform Twitter, the Electric Vehicle Company lost $126 billion in value. According to Reuters,  Investors of Tesla are worried that Musk might have to sell shares in order to fund his $21 billion equity contribution to his $44 billion acquisition of Twitter Inc. The 12.2 percent decline in Tesla's shares on Tuesday is proportionate to a $21 billion fall in the value of Elon Musk’s Tesla stake. Tesla’s CEO pledged to pay $21 billion in cash in the acquisition of the social media platform.

Reuters further said that the EV giant is not involved in the Twitter deal, yet its shares have been targeted by speculators after Musk refused to reveal publicly where his cash for the acquisition of Twitter will be coming from. As per the multiple media reports, Tesla’s CEO could face conflict with China over free speech, which is a major market for EV carmaker as it manufactures vehicles at its Shanghai Gigafactory. NPR further reported that there is another risk that "Musk could become distracted by his latest acquisition.” Elon Musk has a net worth of $257 billion but two-thirds of his wealth is in Tesla stock.