The circus has been going on for more than a month since it was announced in early April that Musk was going to buy Twitter.

And in this short period of time, Tesla, Inc. 's share price fell like a "freefall". As of Tuesday's close, Tesla, Inc. 's share price had fallen to 628.16 US dollars.It has fallen more than 40 per cent since April 4 and has retreated nearly 50 per cent from its November peak.

It is worth noting thatTesla, Inc. 's share price is already lower than it was when it was included in the S & P 500 on December 21, 2020, when Tesla, Inc. was trading at about $695 a share.

Twitter, the protagonist of the circus, can not escape this misfortune either.As of Tuesday, Twitter shares had fallen to $35.76It has fallen about 30 per cent since its peak on April 25th.

According to MarketWatch, 13D documents released by the US Securities Regulatory Commission on April 5 showed that Tesla, Inc. CEO Musk bought 73.12 million Twitter shares, accounting for 9.1 per cent, at an average price of $36.157. This means that at the current share price (1.1% lower than the purchase price)Musk has lost about $30 million on this investment.

However, no matter whether the deal is completed successfully or not, Tesla, Inc. and Twitter shareholders are likely to be affected to varying degrees. The continuous decline in Tesla, Inc. 's share price also indicates thatThe market is very worried that Musk's acquisition of Twitter will affect Tesla, Inc. 's share price.Although Musk has repeatedly said he will not be distracted by the acquisition of Twitter.

Wedbush analyst Dan Ives, who had been bullish on Tesla, Inc. for a long time, said

This "circus show" has always been a major problem for Tesla, Inc. 's stock price.In our view, so far, Musk has underestimated the impact of this acquisition on Tesla, Inc. 's share price. We believe that as Twitter shareholders' meeting approaches and the deal is expected to be approved, Mr Musk will face a fork in the road, and he will have to decide what to do next in this soap opera, as the patience of Tesla, Inc. investors is running out.

It is worth noting that Twitter will hold a shareholders' meeting on Wednesday, local time, and shareholders will be eager to hear management comments on whether the company's advertising revenue will be affected like Snap Inc in the next quarter after Snap Inc downgraded his guidance.This will be particularly important when there is uncertainty about Mr Musk's acquisition. However, the shareholders' meeting will not include a vote on the upcoming acquisition.

Ives pointed out that

Twitter's board of directors is in trouble because of the huge market pressure on technology stocks and Snap Inc's disastrous quarterly performance warning. At present, it seems thatAccepting Musk's lower offer would be a better option.

Bernstein analyst Toni Sacconaghi predicted in a report on Tuesday

If the Twitter deal is completed and Tesla, Inc. 's share price falls to $350,400, Mr Musk may be forced to sell 13 million Tesla, Inc. shares.The margin call may be another reason why some Tesla, Inc. investors may be worried about Musk's acquisition of Twitter.

According to the transaction documents previously submitted to SEC by TwitterMusk is likely to abandon the acquisition by paying a "break-up fee" of up to $1 billion, an agreement signed at the time of the acquisition.At the same time, Musk waived the right to conduct due diligence in the agreement, which is one of the reasons why he failed to know that Twitter had many fake users before the agreement was reached.

It is worth noting that with the continuous decline of Tesla, Inc. 's share price, Musk's wealth has shrunk to 192.7 billion US dollars.Quit the $200 billion club again.

The house leaks happen to rain overnight, and a number of organizations have further lowered their target forecasts for Tesla, Inc..

Daiwa Securities is currently lowering Tesla, Inc. 's target price from US $1150 to US $800.The bank also cut its forecast for Tesla, Inc. 's earnings per share to $9.30 from $12.00 this year and to $14.50 next year from $15.00. Daiwa Securities expects Tesla, Inc. to deliver 1.2 million vehicles in 2022, compared with a previous forecast of 1.4 million.

Fairlead Strategies's Stockton said that Tesla, Inc. 's next support level is $540, which means that the share price may still have 19% room to fall, and whether it will really fall to this level depends on many factors, including the capacity of the Shanghai factory, the company's profitability and the performance of the US stock market.

Some people have said that it is irrational to sing long or short Tesla, Inc. because of short-term stock price changes. For a company, we still have to look more at the position of its core competence on the track.

In the US stock market, performance is everything. As long as there is a performance support, Tesla, Inc. 's share price can rise. Under the current strong demand for new energy vehicles, if Tesla, Inc. 's production and sales volume can once again usher in a blowout, perhaps at that time, Tesla, Inc. 's stock price will return to the highlight moment.

Niu friends.

Guess when the circus will end?

How will Tesla, Inc. 's stock price go next?

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