CALIFORNIA (Washington Insider Magazine) – One of Twitter’s most outspoken critics and users has become one of the company’s largest stockholders.
Elon Musk, the CEO of Tesla, has purchased 9.2 % of Twitter, according to a legal filing released Monday detailing his stock purchases.
Musk’s stock purchases come as one of the most vocal and outspoken opponents of Twitter’s filtering efforts, which have targeted everything from death threats and abuse to disinformation and conspiracy theories in recent years.
Conservatives who have been skeptical of Twitter’s implementation of its rules, including its ban on former President Donald Trump, were encouraged by news of Musk’s decision.
Musk, who has a net worth of approximately $273 billion according to the Bloomberg Billionaire Index, has recently remarked on Twitter — where he frequently comments — that he has given “serious thought” to developing a competitor to the firm. In a piece published last month, he stated that because social media “serves as the de facto public town square,” failure to comply with free speech rules “fundamentally undermines democracy.”
Musk’s Twitter ownership is classified as a passive investment, indicating that he is a long-term investor who wants to limit his stock trading. According to NBC NEWS, the large investment, together with Musk’s previous statements, imply that he may be seeking to secure control of the corporation.
Before the market started Monday, Twitter’s shares had risen more than 25%, while Tesla’s price had risen slightly.
Regulators have criticized Musk on his use of Twitter.
Musk urged a federal judge last month to overturn a securities regulators’ subpoena and a 2018 court order that required him to have somebody pre-approve his Twitter remarks. US securities authorities stated at the time that they had legal power to summon 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 has become more critical of Twitter, which he uses nearly entirely. He conducted a survey in late March, asking if people felt Twitter “rigorously adheres” to free speech ideals. Approximately 70% of over 2 million votes cast responded “No.”
If Musk decides to try to influence Twitter’s management, it will be the company’s second activist investor drive in a few years.
Elliott Management, a group renowned for buying significant holdings in companies and pressuring management to reform, bought a large position in Twitter in early 2020 and pressured then-CEO Jack Dorsey to resign. Dorsey was able to reach an agreement with Elliott Management to continue for the time being.
In November, Dorsey resigned as CEO, although he remained on the board of directors.
