MORE than $125 billion (£99bn) was wiped off the stock market value of electric car giant Tesla overnight amid concerns that boss Elon Musk may have to sell down his stake to fund his takeover of Twitter.

Tesla shares tumbled by 12.2%

on the Nasdaq index in America, with investors spooked that its multi-billionaire chief executive may sell off his stock to pay the cash portion of his $44bn (£35bn) mega deal.

The Tesla owner has personally pledged to pump in $21bn (£17bn) to help finance the deal.

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But questions have been raised over how he will stump up the equity, with much of his fortune tied up in assets such as Tesla and space exploration firm SpaceX.

There are also concerns that the Twitter takeover may see the tech pioneer become distracted and less interested in running Tesla.

Twitter shares were likewise hit on Tuesday, falling nearly 4% to under $49.68 (£39.19) – about 10% below the offer price of $54.20 (£42.76) a share which was agreed on Monday.

This came amid a broader tech sell-off on Wall Street, with the Nasdaq closing almost 4% lower.

But market analyst Neil Wilson, at, said the decline “underscores that investors are anxious about what Musk is up to and whether he can pull it off.”

It is understood that Musk may seek to bring on board other investors to help fund the deal rather than risk destabilising the car maker’s stock, which may also put the wider Twitter deal at risk. Musk’s 17% shareholding in Tesla accounts for the biggest chunk of his huge $270bn (£213bn) personal wealth and are also providing the bulk of the financing for the Twitter acquisition.

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He has pledged some of his Tesla shares to back a $12.5bn (£9.9bn) so-called margin loan for the deal and a big fall in the stock’s value could pose problems.

Wilson said there is a lot of uncertainty over how the takeover saga will play out.

“Could he still walk away? Certainly a $21bn (£17bn) cheque is a lot even for him to write,” he said. “A $1bn (£789 million) break fee might in the end less painful.”

Thousands of Twitter users appear to have already abandoned the platform in the wake of the Musk announcement.”