Who has not heard of Elon Musk? He is an entrepreneur and investor and is among the wealthiest people in the world. He made his fortune as CEO of SpaceX and Tesla. Musk also founded many other companies, such as Neuralink and Boring Company.

Recently, Musk acquired 9.2% of Twitter, making him the biggest shareholder in the company. The Tesla and SpaceX CEO bought 73,486,938 shares on March 14 as per his Securities and Exchange Commission filing.

Keep reading to find out what lead to this purchase and what potential impact this might have on Twitter stock in the future.

Elon and Twitter

Musk has long been one of Twitter’s most prominent users. He regularly uses the network to inform his more than 80 million followers about new products and technologies, such as SpaceX’s massive Starship Mars rocket. He also shares many memes, comments, and viewpoints on world events.

His tweets also got him into trouble. Musk announced in 2018 that he would take Tesla private at a value of $420 per share and had “financing secured” to do so. In reality, the cash was far from solid while he had conversations about sponsoring such a candidacy.

Musk resolved the dispute by resigning as Tesla’s chairman. However, he remained CEO. He also committed to having any future tweets containing critical information about the firm vetted by other Tesla officials before being sent.

What Happened to the Shares after Elon’s Investment?

According to the filing, Musk owns 73.5 million Twitter shares, valued at around $2.9 billion US depending on the stock’s closing price of $39.31. It corresponds to a 9.2 percent ownership position in the corporation.

Twitter shares jumped 27.1 percent to settle at $49.97 on Monday morning. The stock, which had dropped 38% in the previous 12 months, gained up to $8.38 billion to its market value, bringing it to $39.3 billion.

Twitter shares rose another 5% the following day after surging more than 27 percent on Musk’s stock acquisition news.

Future of Twitter

Although a holding of less than 10% in a firm is deemed “passive” by Wall Street, it might indicate Musk’s desire to play more prominent participation in Twitter’s operation.

Musk stated that he is looking forward to working with Parag and the Twitter board to bring big changes to Twitter in the coming months. He also said on Twitter that the site doesn’t allow for enough freedom of speech and expression and that it should open-source its algorithm.

Final Thoughts

Elon Musk took a significant stake in Twitter, which he declared in his regulatory filings in SEC. It sent the social media network’s stock soaring. The shares took off and increased tremendously within a few days. It also started speculations that he might seek an active role in this company’s operations.