Tesla Investors Worried That Twitter Will Distract Elon Musk

Tesla's market capitalization lost $126 billion in a single session on April 26 as the stock dropped more than 12% to $876.42 after Elon Musk's bid to buy Twitter was accepted.

The significant drop can be explained by investors' concern that Musk may sell Tesla shares to complete his $44 billion takeover of the popular social platform. 

Before yesterday's session, Tesla's market cap was already down $250 billion since April 4, the day Elon Musk announced he increased his Twitter stake. In total, Tesla stock lost roughly 23% since then.

As Bloomberg points out, the value of Musk's 17% stake in Tesla has shrunk by more than $40 billion since April 4, almost double the equity portion he pledged in the Twitter transaction.