Musk Buys 73.5 Million Twitter Shares, Stock Spikes 25.9%

Mandatory Credit: Photo by Patrick Pleul/AP/Shutterstock (12861811f)German Chancellor Olaf Scholz, right, and Elon Musk, Tesla CEO attend the opening of the Tesla factory Berlin Brandenburg in Gruenheide, Germany, .
Patrick Pleul/AP/Shutterstock / Patrick Pleul/AP/Shutterstock

Elon Musk bought 73.5 million Twitter shares on March 14 — a 9.2% stake — according to a Securities and Exchange Commission (SEC) 13G filing released April 4.

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Twitter shares skyrocketed 25.9% in pre-market trading April 4.

“This morning in an “eye-popping” regulatory filing Elon Musk revealed he now owns 73.5 million shares of Twitter which represents a 9.2% passive stake in the company according to the 13G filing. The stake is worth $2.89 billion,” Wedbush Securities analyst Dan Ives wrote in a note sent to GOBankingRates.

“Given Musk’s long-standing critical view of Twitter and social media platforms, it was viewed that Musk could look to build a new social media platform to compete with Twitter and others,” Ives wrote.

Indeed, on March 26, Musk tweeted, “Given that Twitter serves as the de facto public town square, failing to adhere to free speech principles fundamentally undermines democracy. What should be done?”

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He subsequently tweeted “Is a new platform needed?”

According to Ives, “it looks like Elon has his eyes laser set on Twitter and we would expect this passive stake as just the start of broader conversations with the Twitter board/management that could ultimately lead to an active stake and a potential more aggressive ownership role of Twitter.”

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“We will be following Musk’s comments/future regulatory filings closely to see if Musk ultimately pursues further conversations with the Twitter board and/or goes to an active stake and above the key 10% threshold. For Tesla purposes, we view this move as Musk just further building out his tentacles and we are not worried in any way around Musk “taking his eye off the ball” with Tesla/SpaceX.”

Wedbush said it maintained its Outperform opinion on Tesla.

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About the Author

Yaël Bizouati-Kennedy is a full-time financial journalist and has written for several publications, including Dow Jones, The Financial Times Group, Bloomberg and Business Insider. She also worked as a vice president/senior content writer for major NYC-based financial companies, including New York Life and MSCI. Yaël is now freelancing and most recently, she co-authored  the book “Blockchain for Medical Research: Accelerating Trust in Healthcare,” with Dr. Sean Manion. (CRC Press, April 2020) She holds two master’s degrees, including one in Journalism from New York University and one in Russian Studies from Université Toulouse-Jean Jaurès, France.
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