(Bloomberg) — Tesla Inc. shares rose late Friday after Chief Executive Officer Elon Musk said he’s walking away from his $44 billion bid to buy Twitter Inc., giving investors in the electric-vehicle company a measure of relief that its leader might be slightly less distracted.
There’s always been a “key man” risk with Musk.
The 51-year-old billionaire already oversees four companies — Tesla, SpaceX, Neuralink and the Boring Company — and his involvement is critical to each of them. His bid to buy Twitter has been an overhang on Tesla’s stock: How could a top executive who is already stretched among several different ventures take on yet another company?
Read more: Elon Musk’s Pursuit of Twitter Accentuates Tesla’s Key-Man Risk
Musk’s retreat from the Twitter deal now kicks off a major legal battle, with the social-media platform saying Friday it plans legal action to enforce the agreement.
For Tesla investors, though, Musk’s decision sparked a mini relief rally.
The shares rose 2.1% as of 6:13 p.m. Friday after regular trading in New York.
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