Dan Ives, an analyst with Wedbush Securities, warned that the revived deal will be a disaster for the company.
A large part of Musk's $250 billion fortune is tied up in the two companies he founded. The electric vehicle maker's stock could fall further due to the fact that Musk will have to sell more shares to fund his takeover attempt.
"That's like me giving away something to buy something," he said.
In a letter addressed to the social media giant's lawyers, Musk proposed restarting talks to buy the company at the originally agreed price of $54.20 a share.
The lawsuit was filed after Musk said he was abandoning his plan to purchase the company. He could avoid a costly court battle by backpedaling.
Musk, the world's richest person, has reduced his stake in the electric maker this year in order to raise money for his attempt to take over the company.
He has reduced his stake in the electric car company by $32 billion over the last year.
At the time, he said that Musk was writing on the wall that a deal could be on the cards.
In Wednesday's premarket,Tesla fell 1.21% to trade at $246.29, whileTwitter fell 0.48% to $52.50.
If there's an immediate end to their court battle, Musk will honor the original deal.
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