On the acquisition of Twitter, Musk's side of the "high" to fly, Tesla, Inc. shareholders are extremely melancholy.

The day after Mr Musk won Twitter, Tesla, Inc. 's shares tumbled 12 per cent, the biggest one-day drop of the year, wiping out $126 billion in market value, making it the worst-performing Nasdaq 100th index on the day.

"Musk took over Twitter" may not be entirely to blame for Tesla, Inc. 's overnight decline. But once the timeline is lengthened, the market's worries become clear:

Since Musk announced his 9.1% stake in Twitter on the 4th, Tesla, Inc. has fallen 19.2%, while Twitter's share price has risen 26.4% over the same period.

It is clear that Musk's acquisition of Twitter has caused panic among investors. Some netizens jokingly called itToday's Tesla, Inc. seems to have been abandoned by Musk.

So what exactly is the market worried about?

• 1. Musk "sells Tesla, Inc. to buy Twitter", affecting the normal operation of Tesla, Inc..

On the 25th local time, Twitter announced that it had accepted Musk's $44 billion offer to buy Twitter for $54.20 a share, which is expected to be privatized by the end of this year.To raise money for the exchange, Mr Musk used his roughly 1/3 stake held by Tesla, Inc. as collateral to borrow $12.5 billion from the bank. In addition, he must come up with another $21 billion in cash.

Investors are very worried that Musk may sell or pledge more Tesla, Inc. shares to finance the deal.This is an important reason why Tesla, Inc. 's share price is under pressure on Tuesday, which is bound to affect the normal operation of Tesla, Inc..

In addition, Tesla, Inc. downside risks have not been removed, if Tesla, Inc. continues to fall sharply, it may force Musk to make a margin call, causing a series of effects.

Under Mr Musk's loan agreement, he must provide $100 worth of Tesla, Inc. shares for every $20 loan, or a loan-to-value ratio (loan-to-value ratio) of 20 per cent.If on any given day his loan accounts for more than 35 per cent of the value of his mortgaged shares, he will be forced to make a margin call, when Mr Musk will have to sell more of his holdings, prepayment of loans or provide additional collateral.According to foreign media estimates, if Tesla, Inc. 's share price falls by about 43%, it will trigger a margin call.

• 2. After the acquisition, Twitter will distract Musk.

In addition to Tesla, Inc., Musk is also in charge of SpaceX, tunnel construction company Boring Company and brain-computer interface technology company Neuralink, including automotive, aerospace, biomedical and other fields. Investors worry that Musk's acquisition of Twitter could lead to a lack of energy in the electric car company.

After all, Musk has always shown a desire to get involved in the Twitter business. Moreover, Musk's task after the acquisition of Twitter is not easy, in addition to paying off debts, but also to reform the historically mediocre company, which is not easy.

Gene Munster, managing partner of Loup Ventures, a venture capital firm that owns Tesla, Inc. 's shares, said:

Musk was distracted. He already has a lot to do and has been involved in many different projects. This is a negative for Tesla, Inc. 's share price and may last for 1-3 months. "

According to the report submitted by Tesla, Inc. to SEC, Tesla, Inc. has a large backlog of orders in the US market. Now it is production capacity, not market demand, that limits Tesla, Inc. 's revenue growth. For Tesla, Inc. investors, they would prefer to see Mr Musk focus on accelerating production capacity at factories in Berlin and Texas.

• 3. FromWestern countriesStrong supervision
  

The regulation of Internet platforms by global regulators is also a big challenge for Musk after his acquisition of Twitter. At present, all countries are cracking down on the spread of false content on the Internet by strengthening supervision.

Twitter must comply with new EU rules on dealing with illegal and harmful content online if it is to continue to operate in the EU, a leading EU regulator has warned. This could challenge Mr Musk's plan to reduce content censorship.

At the same time, US policymakers are doing more to control the power of large technology companies and force them to clean up harmful content on their platforms.

White House officials and Democrats are assessing the impact of Musk's acquisition and platform management comments on the mid-term and 2024 elections, especially whether Tesla, Inc. CEO will allow former President Trump to return to the social platform, according to US media reports.

Us Senator Elizabeth Warren said Musk's purchase of Twitter reaffirmed the need for "strict regulation of large technology companies". "this is dangerous because a billionaire will determine how millions of people have the opportunity to communicate with each other. "