Key Highlights:
- Elon Musk will now hold 9% stakes in Twitter worth $3 billion.
- Twitter witnessed a surge of 20% in shares.
- The second-biggest stakeholder after Elon is Vanguard with 8.79%.
The leading automaker company, Tesla’s CEO, Elon Musk will now hold a 9% stake in Twitter worth $3 billion. This makes Elon the biggest shareholder on Twitter. After the news got out, Twitter witnessed a surge of 20% in shares.
Previously, Elon had questioned the ‘free speech’ on Twitter and how he wants to build a new social media platform. The Tesla CEO has been garnered 80 million followers on Twitter since he joined the platform in 2009.
Elon is a frequent user of Twitter and uses the platform to make several announcements or share random memes or thoughts.
Is Elon Musk not a fan of current social media platforms?
Elon Musk has been questioning various social media platforms for their policies and how the policies are undermining democracy by not following the ‘free speech principle.
Thomas Hayes, the managing member of Great Hill Capital LLC, commented, “It does send a message to Twitter… having a meaningful stake in the company will keep them on their toes because that passive stake could very quickly become an active stake.”
Tesla rapidly growing
Elon Musk is ranked amongst the world’s richest entrepreneurs. Since November, he has been selling the stakes in Tesla and stated that he would offload 10% of his holding in the EV maker. By far, Elon has sold $16.4 billion worth of shares
A regulatory filing confirmed that Elon Musk now owns 73.5 million Twitter shares under the holding of Elon Musk Revocable Trust. The second-biggest stakeholder after Elon is Vanguard with 8.79%.
Social Media platforms are witnessing an uncertain growth graph in the market. In the past year, Twitter has fallen 38%. While other social media giants like Meta Platform and Snap Inc are also trading higher.
