Tesla CEO Elon Musk stands at the Tesla Gigafactory foundry during a press event.
Patrick Pleul | Image Alliance | Getty Images
Twitter stock is on track for its best day since its IPO, surging more than 29% after an SEC filing revealed that Musk had acquired a 9.2% passive stake in the company.
The company closed down nearly 73% after its IPO on Nov. 7, 2013. The stock is still nearly 37% down from its all-time high set in February 2021.
Some investors expect the outspoken executive to take a more aggressive stance. That could include increasing his stake or taking a controlling stake in the company to drive change.
“Considering what a small investment this is for him (~1% of net worth), we wouldn’t be surprised if he increased his stake even further and potentially took a more active role in decision-making at the company.” The shared Analysts at Truist Securities in a note Monday, citing Musk’s reported net worth of $273 billion.
Musk’s investment comes after he said he was considering building a new social media platform. The Tesla CEO is unhappy that his tweets are being scrutinized by regulators like the US Securities and Exchange Commission.
“Given that Twitter serves as a de facto public marketplace, failure to uphold the principles of free speech fundamentally undermines democracy,” Musk tweeted March 26. “What should be done?”
Musk was subpoenaed by the US Securities and Exchange Commission in November after asking his Twitter followers if he should sell 10% of his Tesla shares — causing the stock price to plunge.
In February, Musk accused the SEC of “harassment” and a calculated effort to “interrupt” his right to free speech.
CNBC’s Sam Shead contributed to this report.
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