Tesla boss Elon Musk popped at the top of the trends after it emerged that he’d acquired a 9.2 per cent stake in the company. The purchase makes him the largest single shareholder of the company.
A filing with the US Securities and Exchange Commission on Monday indicated that Musk acquired 73,486,938 Twitter shares valued at 2.89 billion. The acquisition was made via the Elon Musk Revocable Trust, which has the Tesla boss as the sole trustee.
The news of Elon Musk’s acquisition was first broken by Bloomberg. The effect of the information was near-instantaneous. Twitter stock, which had dipped precariously, began to rally again – and so did interest in the social media platform.
Elon Musk, wealthy as he is, doesn’t throw his money into just about any venture. There has to be a good reason for him to make such a significant investment in the platform.
For Twitter investors, Elon Musk’s investment is more than a show of faith in the company and its prospects – and, of course, a good reason to hold on to their bags to see more gains in the coming days.
It remains to be seen if and how Musk’s acquisition will alter Twitter’s financial destiny for good.
