Chavi Mehta and Hyunjoo Jin

(Reuters) – Tesla (NASDAQ) analysts and investors are concerned that Elon Musk’s proposal to purchase Twitter has caused concern among Tesla (NASDAQ) shareholders and analysts. The chief executive is likely to become distracted by the takeover play of Tesla and possible sale of Tesla shares in order to finance the transaction.

This billionaire entrepreneur also runs SpaceX rocket company. Twitter Inc (NYSE:) Thursday, April 13, 2014, with $43 billion in takeover offers

Tesla observers are concerned about the idea that Musk might try to make that deal by possibly selling more of his Tesla stake and overseeing another company.

“Elon is always distracted. “Elon is distracted. “He’s involved with a lot different endeavors,” stated Gene Munster (managing partner of Loup Ventures), which holds shares in Tesla. This is an approximately one-to three month headwind for Tesla’s stock.

Tesla shares fell by more than 9.9% after the CEO of Tesla revealed his greater than 9% stake on Twitter. Tesla shares fell 3.7% Thursday.

Musk may have talked of potential changes to Twitter’s platform, but Tesla has its own issues – needing to increase the production at Texas and Berlin assembly plants. Analysts said that this is a challenge Tesla must overcome. The COVID-19 China crackdown on China has led to Tesla’s Shanghai facility, its largest, being shut down.

Craig Irwin from Roth Capital Partners, analyst said “Musk Tesla” and that investors do not want Tesla losing its leadership position.

Musk spoke directly to investors before the foray, and they have their own fears. He said that he was a seven-day worker, which translates to “crazy hours”, which is a split of his time between SpaceX and Tesla. His brain-chip startup Neuralink, and his tunneling venture The Boring Company are also led by him.

An additional concern is Musk’s financing of a deal for Twitter that would involve massive loan and stock sales. Analysts said this was another worry.

Wells Fargo Colin Langan (NYSE:) Analyst said Musk who owns over 9% of Twitter would need $39B to conclude the deal. He also warned that the potential sale or purchase of Tesla shares might further push the stock down.

Tesla executive may pledge company stock to secure loans. The maximum amount of the loan cannot exceed 25%, however, as per company policy.

He could therefore borrow $42.5B by pledge all his $170 billion shares. According to Tesla filings last year, he had already pledged half his Tesla shares to be collateral for certain personal indebtedness.

Musk stated on Thursday that he owns the assets needed to buy Twitter. He did not give details.

Stocks at Space X and Tesla are the mainstays of the fortunes of the richest man in this world. Last year, he sold $16 billion worth of Tesla shares. $11 billion was to be paid in taxes.

“He is potentially setting himself up for a huge liability down the road,” said Howard Fischer, a partner at law firm Moses & Singer and former senior trial counsel at the U.S. Securities and Exchange Commission.