Elon Musk, the CEO of Tesla, has purchased a 9.2 percent interest in Twitter. As per a regulatory filing made Monday, Musk acquired around 73.5 million shares. Musk's Twitter ownership is classified as a passive investment, implying that he is a long-term investor who wants to keep his buying and selling to a minimum.
However, Musk has raised concerns about the capacity to freely talk on Twitter, tweeting about free speech and the social media site last month, and industry observers were wary of the erratic CEO standing on the sidelines anyplace.
WedBush Securities' Dan Ives stated in a client note early Monday, "We would anticipate this passive position to be just the start of larger talks with the Twitter board/management that might eventually lead to an active stake and a potentially more aggressive ownership role of Twitter."
Before the market opened on Monday, Twitter's stock had risen more than 25%, while Tesla's price had risen modestly.
Musk stated in a subsequent tweet that he was "giving serious thought" to building a new social media platform, in addition to raising worries about freedom of expression on Twitter. Regulators have chastised Musk on his use of Twitter
Musk urged a federal judge early last month to overturn a securities regulators' subpoena and a 2018 court deal that required Musk to have someone pre-approve his Twitter tweets. US securities authorities said they had the jurisdiction to subpoena Tesla and Musk over his tweets, and that Musk's attempt to overturn a 2018 court order requiring pre-approval of his tweets was invalid.
Musk's disclosure regarding his Twitter stock comes only two days after Tesla reported disappointing first-quarter production figures. The business supplied 310,000 automobiles throughout the time, which was significantly less than expected.
Musk is regarded as the richest guy in the planet. He routinely uses Twitter, where he has over 80 million followers, in controversial ways that generate headlines and controversy. Musk claimed in a tweet in 2018 that he has financing to privatise Tesla without presenting any proof. The post caused a jump in the price of Tesla stock, which the SEC deemed deceptive.
