Elon Musk's announcement to take over Twitter has not been received by the general public well. Now it seems like, there is some hustle and bustle going on in Tesla too as the investors are concerned over Musk's expensive purchase and it is reported that the electric car company saw a drop of $125 billion in its market value.
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Tesla's stock hit a new low yesterday after Elon Musk made a striking deal to buy Twitter.
The Tesla owner took a really bad blow on 26 April as the market value of the electric car company dropped by more than 12 percent.
According to Markets Insider, the sharp fall is a result of concerns over Musk financing his Twitter bid of $44 billion.
It is believed Musk secured a loan for $12.5 billion against his 17% stake in Tesla.
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Not only this, but the billionaire also borrowed $13 billion from Wall Street, but it is yet to be revealed how he will make up the bid amount. Due to this uncertainty, the investors are concerned and are worried that Musk will unload Tesla stock to ensure a successful takeover.
Tesla said in its recent annual filing: "If Elon Musk were forced to sell shares of our common stock that he has pledged to secure certain personal loan obligations, such sales could cause our stock price to decline."
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It is to note that Musk already sold off some of his Tesla shares last year in November and the reason shared was expiring stock options and a looming tax bill.
Well, this isn't the first time Musk's stake in Tesla has taken a blow after a Twitter buyout related deal.
On April 4, Musk announced that he'd purchased a 9.2% stake in Twitter. According to Bloomberg, the value of Musk's stake in Twitter then proceeded to drop by $40 billion.
Apart from the concerns over Tesla share prices, many have expressed concern over the Twitter buyout too.
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People are already speaking out against Musk's purchase, with some even leaving the platform itself.
Actor and presenter Jameela Jamil are one of those who have expressed concern over Musk's takeover of social media platforms, with Jamil's final tweet addressing Musk's calls for more 'free speech' on Twitter.
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"Ah he got twitter. I would like this to be my what lies here as my last tweet. Just really *any* excuse to show pics of Barold [her dog] I fear this free speech bid is going to help this hell platform reach its final form of totally lawless hate, bigotry, and misogyny. Best of luck."
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She went on to tweet: "One good thing about Elon buying Twitter is that I will *FINALLY* leave and stop being a complete menace to society on here. So it’s win win for you all really."
It seems like the Tesla owner would have to make some tough choices ahead and only time will tell how the company owner will deal with Twitter and if he will be selling his Tesla stocks or not.