SAN FRANCISCO: With Elon Musk acquiring Twitter for USD44 billion, the stock of his electric car firm Tesla plummeted, wiping off at least USD 125 billion in market value due to several clear concerns.

According to media sources, Musk may be at odds with China over free speech, which is an important market for Tesla because the Shanghai Gigafactory builds vehicles.

According to NPR, another concern is that "Musk could become distracted by his latest acquisition." Following the announcement of the Twitter acquisition, Tesla's stock dropped 12.2%.

The world's richest man has a net worth of USD 257 billion, but Tesla stock accounts for two-thirds of his fortune. "If Musk sells some of those interests, it might further depress Tesla's stock price," the report claimed late Tuesday.

In its most recent annual report filed with the US Securities and Exchange Commission, the corporation issued a similar warning to investors. "If Elon Musk is obliged to sell shares of our common stock that he has pledged to secure certain personal loan commitments, such shares may cause our stock price to fall," the company said.

Another source of concern for Musk is Twitter. Advertisers are experiencing nightmares because free speech on the platform might ruin business prospects because their brand's name may display alongside hate speech, abusive or harmful content if it is not moderated.

According to TechCrunch, sponsors may quit if Twitter under Musk "tweaks or revamps its moderation procedures, reinstates banned users, or enables hate speech and other hazardous and abusive content to return."

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