Elon Musk Purchases a 9.2% Stake in Twitter
- On April 5, 2022, Elon Musk purchased 73 million shares of Twitter, making him have the largest stake in the company at 9.2%.
- Due to his large stake, he was initially believed to be joining Twitter's Board of Directors but declined.
- Although his contributions and intentions for Twitter are not yet known, Musk has been a part of many successful ventures and is known for his out-of-box thinking.
On April 5, 2022, Elon Musk, founder and CEO of the electric car manufacturer Tesla, became the largest shareholder in the social media company Twitter. Musk, worth an estimated $282 billion, purchased 73 million shares to give him a 9.2% stake in the company.
Since the acquisition has caused lots of speculation, it is time to look at Musk's past events on Twitter and his intentions for the company's future, even though he has declined to join Twitter's Board of Directors.
Elon Musk’s Previous Controversies on Twitter
Musk has had a track record of creating controversies while on Twitter. For example, on August 7, 2018, he tweeted about a private buyout of Tesla at $420 a share. The tweet caused a rise in Tesla's stock price and eventually led the Securities and Exchange Commission (SEC) to take action against Musk. Musk was charged with securities fraud due to the vast influence his tweets hold, and he was ordered to pay a $40 million penalty.
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Additionally, during a cryptocurrency surge, Elon Musk tweeted a picture of Dogecoin, alluding it will be taking over the global financial system. The tweet resulted in the price of Dogecoin increasing by 14% and further displayed the concern many had regarding how much influence Elon Musk has within the crypto and stock markets.
Elon Musk’s Plans for Twitter
Before becoming its largest shareholder, Elon Musk criticized the social media platform. He stated, "Given that Twitter serves as the de facto public town square, failing to adhere to free speech principles fundamentally undermines democracy," as the platform banned Donald Trump from using its services after his tweets incited a riot on January 6, 2021.
Musk has even gone so far as to potentially start his own social media platform. However, after becoming the largest shareholder of Twitter, he held a public conversation on his Twitter page. He asked the platform's users for their input on potential ways the social platform could improve.
Musk has not disclosed what his future plans are for Twitter. However, many are speculating that due to his vast technological knowledge, he will be making certain ramifications that may improve operations and make it a better place for Twitter users.
What to Expect Going Forward
Elon Musk is one of the most brilliant minds of this generation, as he has founded many companies which have gone on to find massive success. Some of his former companies, such as Zip2 and PayPal, were eventually bought for $307 million and $1.5 billion, respectively.
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Furthermore, his current companies, Tesla and SpaceX, all have had continued success over the past couple of years. Tesla has been the leading EV manufacturer and SpaceX launched their being awarded a NASA contract allowing them to send rockets to the International Space Station.
Therefore, regardless of the previous events that have surrounded Musk on Twitter, one thing to note is his exceptional intelligence will help take Twitter to the next level.
Disclaimer: The mentioned remarks regarding Elon Musk are NOT considered financial advice. Should you invest in any companies which Elon Musk is involved in, do you due diligence prior to investing. CapWay is not liable for any losses made from investments based on the above information.
What are your thoughts on Elon Musk having the most amount of Twitter shares as an individual investor? Do you believe that this investment will pay off for Musk? Let us know in the comments below.
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