Tesla CEO Elon Musk takes 9.2% stake in Twitter
Musk bought about 73.5 million shares, according to a regulatory filing Monday.
Musk’s stake in Twitter is considered a passive investment, meaning Musk is a long-term investor who seeks to minimize his buying and selling of stocks.
However, Musk has raised questions about the ability to communicate freely on Twitter, tweeting last month about freedom of speech and the social media platform and industry analysts were skeptical that the mercurial CEO stay on the sidelines anywhere.
“We would expect this passive participation to be just the start of broader conversations with Twitter’s board/management that may ultimately lead to active participation and potentially more aggressive ownership of Twitter” , wrote Dan Ives of WedBush Securities in a client note early Monday.
Shares of Twitter jumped more than 25% before the market opened on Monday, while shares of Tesla rose slightly.
In addition to raising questions about free speech on Twitter, Musk, in a separate tweet, said he was “seriously considering” creating a new social media platform.
Musk has clashed with regulators over his use of Twitter.
Early last month, Musk asked a federal judge to quash a subpoena from securities regulators and throw out a 2018 court settlement in which Musk had to get someone to pre-approve his posts. on Twitter. US securities regulators have said they have the legal power to subpoena Tesla and Musk over his tweets, and that Musk’s decision to reject a 2018 court agreement that his tweets would be pre-cleared Is not valid.
Musk’s revelation about his stake in Twitter shares comes two days after Tesla Inc. reported lackluster first-quarter production numbers. While the company delivered 310,000 vehicles during the period, the figure was slightly below expectations.