Tesla shares extended their decline Friday as investors questioned the feasibility of a SpaceX takeover.
The falling value of SpaceX stock serves as the primary obstacle for the proposed acquisition currency.
A potential all-stock deal values Tesla at approximately $1.4 trillion.
SpaceX would need to issue a massive volume of new shares to fund the transaction.
Analysts estimate current SpaceX shareholders could face 25% dilution from the deal.
This projected dilution raises concerns regarding the SpaceX board's fiduciary duty to its investors.