After the market closed on Friday, investors reacted positively to the news that Musk had decided not to go ahead with his plan to buyTwitter.
On Friday, the company's shares closed at $752.29, an increase of 14.1%. After regular trading hours, the share price increased by as much as 3.39 percent, before increasing again by about 2.68 percent.
The legal team for Musk tried to pull out of the deal. There were rumors that Musk would try to exit the deal after he publicly attacked the social media company.
The letter said that the company appeared to have made false and misleading representations that Musk had relied on, and that he was going to end the deal because of that.
Musk owns a number of companies, including The Boring Company and Neuralink, but his ability to effectively run both companies is in question. Their cries became louder as their share price fell.
When Musk took a 9.2% stake in the social media company, the price of the shares was $1,145.45. The share price has plummeted.
This image is from a Screenshot of Yahoo Finance.
The biggest drop in the past several months was on April 26, the day after Musk agreed to buy the social networking site. The market value of the company fell to $906 billion.
The shares of the company fell after Musk disclosed his stake. The market value of the company has dropped since April 4. Today's share price is far below the value of the business that Musk offered to buy.
Musk's saga is far from over, even after a brief sense of relief for shareholders.
The board is going to fight Musk. The chairman of the board is committed to closing the transaction on the price and terms agreed upon with Mr. Musk. The Delaware Court of Chancery is where we are confident we'll win.
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