Hyunjoo Jin and Svea Herbst Biyliss

(Reuters) – Tesla Inc (NASDAQ:) lost $126 Billion on Tuesday, amid concerns from investors that Tesla Chief Executive Elon Musk might have to liquidate shares in order fund $21 billion of his equity contribution for his $44 Billion buyout. Twitter Inc (NYSE:).

Tesla was not part of the Twitter acquisition, but its shares were targeted by speculators. Musk refused to reveal publicly from where the cash came. Tesla’s share price dropped 12.2% on Tuesday. That is a 21% drop in Tesla’s value, which was the same as his $21 Billion commitment for the Twitter deal.

Wedbush Securities analyst Daniel Ives stated that Tesla shares are affected by concerns about Musk’s future stock sales and by the possibility of him becoming distracted via Twitter. He stated that the “this (is) creating a bear festival for the name”.

Tesla has not yet responded to my request for comment.

Tesla’s plunge in share price came amid a difficult background for technology stocks. Investors worried about slower global growth and aggressive rate increases from the U.S. Federal Reserve prompted Tuesday’s closing of the Nasdaq to its lowest point since December 2020.

Twitter shares fell 3.9% on Tuesday to $49.68. Musk had agreed to purchase it for $54.20 per share cash on Monday. Investors are concerned that Tesla’s share price plunge, which is where Musk gets most of his $239billion fortune, will cause him to reconsider this Twitter deal.

Ed Moya, OANDA’s senior market analyst said that if Tesla’s share prices continue to fall it will threaten his funding.

Musk took out a $12.5 million margin loan linked to Tesla stock as part of the Tesla deal. Musk had borrowed about half his Tesla shares.

David Kirsch of the University of Maryland said that Musk loans caused investors to start worrying about “cascades of margin calls”.