Tesla Inc. stock rose more than 5% on Friday after news that Chief Executive Elon Musk has put the Twitter Inc. deal “temporarily on hold.”
Friday’s gains were taking some of the sting from earlier declines that bring Tesla’s TSLA, +7.62% weekly losses to more than 11%.
The stock was on track for its biggest one-day percentage gain since March 28, when it rose 8%, getting a boost from news about the opening of Tesla’s factory in Berlin, Germany.
Tesla shares were down about 22% from when Musk announced his intention to buy the social-media company TWTR, -8.41% in mid-April.
Earlier Friday, Musk tweeted that the deal was on hold for now while he looks into fake accounts. He later tweeted that he was “still committed” to deal.
“Musk has less net worth to finance a gamble like acquiring Twitter,” said David Trainer, chief executive of investment research firm New Constructs.
“The Musk/Twitter saga is a warning sign for Tesla shareholders,” Trainer said.
Tesla stock has fallen 27% this year, compared with a loss of around 16% for the S&P 500 index. SPX, +2.62% It’s down about 37% from its record closing high of 1,229.91 on Nov. 4.