Tesla CEO Elon Musk's announcement of the acquisition of Twitter has caused market volatility.
Now he can still end the deal by paying a $1 billion "breakup fee" if he wants to.
Tesla’s shares fell more than 12% at the close on Tuesday after Musk announced the acquisition, wiping $126 billion off its market value.
And Musk's personal wealth has also shrunk by $21 billion, which is exactly the same as his $44 billion purchase of Twitter's equity contribution.
According to the latest data from the Bloomberg Rich List on April 27, Musk's personal wealth is $252 billion, ranking first in the world's richest list, almost 100 billion higher than the second-ranked Amazon founder Jeff Bezos (Jeff Bezos) Dollar.
Until Twitter agreed to the acquisition, Musk still did not detail how he would raise funds.
But investors believe Musk may have to sell shares, with most of his current holdings tied to his publicly traded shares of Tesla and privately held SpaceX.
In addition, Musk took out a $12.5 billion margin loan tied to Tesla stock, which the market fears could spark a slew of margin calls in the future.
Still, Musk's deal with Twitter leaves an escape hatch for a possible takeover failure.
Musk could end the deal by paying Twitter a $1 billion "breakup fee" if he couldn't raise the required equity, debt or margin loan financing, according to a company filing on Tuesday.
Market participants believe that the factors that triggered the sharp drop in Tesla's stock price on Tuesday were in addition to investors' worries that Musk would sell a large number of Tesla shares, but also concerns about the profit outlook caused by Tesla itself.
Affected by rising supply chain and raw material costs, Tesla's earnings in the coming quarter will face challenges.
Musk has already said that Tesla won't be raising prices again anytime soon.
"Current prices are for vehicles delivered in the future, say six to 12 months from now," he said at Tesla's earnings call last week.