Spider-Man: Far From Home - Mysterio's Doctor Strange Link EXPLAINED
2. The Technology Theory
The key for Homecoming's integration into the MCU was the introduction of the idea of left-over villain technology - primarily Chitauri tech from the aftermath of the Battle Of New York and Crossbones' gauntlets from the kick-off sequence of Civil War. It was an ingenious ploy and it made Spider-Man feel like an organic annex to the MCU so far as well as tying into established lore without necessarily having to tie all of the plot to the other movies.
Even more importantly, it gave us a smart explanation for how these colourful characters could be so empowered without having to go into sillier waters. It made them more grounded figures who simply had access to incredible technology. They're like Marvel's answer to Syndrome from The Incredibles and it has been noted that Mysterio's presumed plot of fighting the Elementals to make himself adored and appreciated would be exactly the same as Syndrome's plot in that movie.
So, it could be that Mysterio has either developed his own technology to seem to ape magic (it's telling that he's referred to as a cross between Iron Man and Thor in the trailer to that end) or he's using more reclaimed alien technology the way Vulture and his gang were. We already know that Michael Mando's Scorpion will be doing that, since he was to be one of Vulture's clients - who's to say they didn't have another one by the name of Quentin Beck?
Also, there's the small fact that The Tinkerer was never arrested at the end of Spider-Man: Homecoming. Couldn't he be behind helping develop Mysterio's technology in order to discredit Spider-Man as the world's new favourite superhero?
Think about it: the best way to work against that is to make Spider-Man doubt himself, which would involve both discrediting his powers and infallibility and also destabilising his position with his "fans." Peter is, after all, the superhero most tied to his community (Cap claims he is but he never really fights on behalf of his locality because he's saving the world all the time), so turning their eyes to another hero would be an easy victory over him. And The Tinkerer has a vested interest in that: not only did Spider-Man defeat Vulture and thwart their Stark Industries heist, he's also an ongoing threat to Tinkerer's client base.
Removing that impediment to his business would suit The Tinkerer as a possible hidden mastermind and bringing him back would suit Marvel's tendency not to just leave loose ends.
Then again, it might not be technology behind Mysterio at all. It might genuinely be a kinda magic...