Sunday, April 14, 2024

Why did Elon Musk buy its shares despite constant criticism on Twitter?

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Elon Musk, the US billionaire and CEO of Tesla, announced the launch of his own social networking site a few days ago, in a tweet on Twitter, criticizing the global platform and saying the document was submitted to the US Securities and Exchange Commission. Musk bought about 73.5 million shares of Twitter’s common stock, which is 9.2% of the company’s stock value.

Musk, who has been harshly critical of Twitter, says the company is undermining democracy by failing to uphold the principles of freedom of speech, which today is its largest shareholder, according to the Financial Times.

According to “Euronews”, his stake is 2.25% higher than that of Twitter founder and CEO Jack Dorsey.

Muskin’s move raises many questions, especially as one of the world’s richest men seeks to make Twitter’s laws and regulations more relevant to him by gaining more influence on the social network.

Will he buy more shares or try to take over the company as a whole? Will Musk be asked to join the Twitter board? Will Twitter invite him to join?

A “thorny” relationship

Musk’s relationship with the global site was not good, but rather complicated and involved in legal conflicts with the SEC, and his tweets and comments about Tesla’s finances often provoked widespread controversy.

What is Elon Musk trying to do now, is he going to pressure the company to change its policy on reviewing content under freedom of expression?

In 2018, Musk, who is a frequent Twitter user and has nearly 80 million followers, released a tweet in which he said he had the right funds to pull Tesla out of the stock market.

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After another false tweet in early 2019, Musk agreed to the requirement to get prior approval for his posts directly related to Tesla’s business. Musk has also stepped down as chairman of Tesla’s board of directors.

However, in early March, Musk asked a New York judge to rescind the 2018 contract. Billionaire’s lawyer Alex Spiro, in a letter to the judge, said the Securities and Exchange Commission was trying to “harass Tesla and pacify Musk.”

On the Wall Street Stock Exchange, Twitter’s share rose about 25% yesterday in electronic exchanges prior to the opening of Operation Mask. The value of the billionaire’s investment reached about $ 2.9 billion, according to the company’s stock closing price on Friday.

Twitter’s stock rose 24.01% to trade at $ 48.75 in eleven GMT quarters. Shares of other social media companies, including the meta of the Snapshot app and the Snapshot owner, rose.

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Nadia Barnett
Nadia Barnett
"Award-winning beer geek. Extreme coffeeaholic. Introvert. Avid travel specialist. Hipster-friendly communicator."

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