In a regulatory filing, Elon Musk discloses a 9.2 percent stake in Twitter
Elon Musk, CEO of Tesla, has purchased a 9.2 percent stake in Twitter. According to a regulatory filing on Monday, Musk acquired around 73.5 million shares.
Musk's ownership in Twitter is classified as a passive investment, which suggests he is a long-term investor who wants to limit his buying and selling of the stock.
Musk, on the other hand, has been voicing concerns about the capacity to freely talk on Twitter, tweeting last month about free speech and the social media network, and industry observers were doubtful of the erratic CEO standing on the sidelines anywhere.
"We would expect this passive stake as just the start of broader conversations with the Twitter board/management that could ultimately lead to an active stake and a potential more aggressive ownership role of Twitter." "WedBush Securities' Dan Ives wrote in a client note early Monday.
Twitter's stock rose more than 25% before the market opened on Monday, while Tesla's stock rose slightly.
In addition to highlighting concerns about free expression on Twitter, Musk stated in a subsequent tweet that he was "given serious attention." "to the development of a new social media platform
Musk has had run-ins with authorities over his use of Twitter.
Musk urged a federal judge early last month to overturn a securities regulators' subpoena and to overturn a 2018 court deal that required Musk to have someone pre-approve his Twitter tweets.
US securities authorities said they had the legal jurisdiction to subpoena Tesla and Musk regarding his tweets, and that Musk's attempt to overturn a 2018 court order requiring his tweets to be pre-approved is invalid.
Musk's disclosure regarding his position in Twitter shares comes only two days after Tesla reported disappointing first-quarter manufacturing figures. While the business delivered 310,000 automobiles throughout the time, this was significantly lower than expected.
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