Why are Twitter (TWTR) and Tesla (TSLA) Stocks Rallying Today?

YEREVAN (CoinChapter.com) – Did Elon Musk buy Twitter?

That question will be answered on Oct 28, as the billionaire investor expects to close the $44-billion buyout deal. Moreover, Musk told Twitter employees in the San Francisco branch that he has no intention of laying off 75% of the company’s staff, contrary to what the Washington Post reported only a week ago.

Elon Musk is Erratic

The Twitter-Elon Musk relationship has not been smooth, as CoinChapter covered earlier.

The eccentric Tesla CEO decided to buy Twitter in April 2022 after joining the company’s board of directors. Then, he tried to step back from the deal, prompting shareholders to sue him for manipulating the Twitter stock price.

In the final development of the Twitter Elon Musk saga, the billionaire contacted the banks involved in the buyout deal and pledged to close the acquisition by Friday, Oct 28. Meanwhile, thousands of Twitter employees hung in the balance.

According to the Washington Post, Musk intended to lay off 75% of the company’s employees.

However, as mentioned above, Musk visited Twitter headquarters in San Francisco (carrying a sink) and told the employees he had no intention of carrying out massive layoffs.

TWTR Stock Appreciated the Irony

Twitter stock (TWTR) traded at $53.4 in the Asian-Pacific session on Oct 27, after a 26% jump quarter-to-date. The hype around the buyout deal seemed to agree with TWTR stock ahead of the final closure on Oct 28.

Furthermore, the Twitter stock closed the Oct 26 session above $52 and successfully retested a former resistance, as seen in the chart above. The next potential resistance would stand at just under $55, the dotted line on the chart․

Tesla (TSLA) stock follows the trend

Meanwhile, TWTR was not the only Musk-related stock that benefitted from the hype. Tesla stock TSLA also continued the recovery and reached $224 on Oct 27.

It is unlikely that the Tesla stock caught the ‘contagion’ from Twitter stock through association with Elon Musk. The chances are it recovered in tandem with the stock market. However, if TSLA stock keeps the bullish momentum, it could reach another significant support/resistance at $230.