The social media company's shares fell more than 5 percent in premarket trading on Monday, as investors anticipated a potentially drawn-out legal battle between the company and Musk.
Three months ago, Mr. Musk reached an agreement to buy the social networking site. He tried to back out of the legally binding acquisition agreement on Friday, saying that he didn't know the number of accounts on the platform.
The board of the company accepted Mr. Musk's offer to buy the company. Since the deal was signed, investors have become more skeptical that the acquisition by the billionaire would go through. The price offered by Mr. Musk is below the highs it reached last year.
Mr. Musk has been fighting with the executives of the platform for months over his request to get information about how they detect and count the number of fake accounts on the platform. He went as far as to send a poop symbol to Parag Agrawal, the company's chief executive, in response to his explanation of how the social networking site works. Experts think Mr. Musk may be trying to bargain for a lower purchase price by focusing on false accounts.
During a technology conference in Miami in May, Mr. Musk said he was open to buying the company at a cheaper price. The company's board was determined to close the deal on the price and terms agreed upon with Mr. Musk.
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