Twitter skyrockets after report Musk will close with deal

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Shares of Tesla Inc pared early gains while Twitter Inc surged on Tuesday after a report that billionaire Elon Musk is expected to offer to continue its takeover of the social media platform at $54.20 per share.

Twitter jumped nearly 13% to $47.93 before the stock was halted following the Bloomberg News report. A source later told Reuters that Musk had offered to complete the deal at its original price of $54.20.

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Tesla was last up 1.6% at around $246, down sharply from an earlier high of $257.50.

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More than $16 billion worth of Tesla shares had been traded as of midday, nearly 15% of all transactions on Wall Street, according to a Reuters calculation.

Musk and Twitter were due to enter the courtroom this month, with Twitter seeking an order ordering Musk to follow through on his agreement last April to buy the company for $54.20 a share, or $44 billion. . Musk tore up the case in August.

Tesla shares have been under pressure since Musk agreed to buy Twitter over concerns about how much stock in the automaker he could sell to fund the purchase.

Twitter and Musk’s attorneys weren’t immediately available for comment.

(Reporting by Noel Randewich in Oakland, Calif. Editing by Matthew Lewis)

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