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Thursday, December 7, 2023

Twitter’s stock rises as Tesla’s chief Musk acquires 9.2% stake in it

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Following the announcement that Elon Musk is acquiring a stake in Twitter,  Tesla shares rose slightly while Twitter’s stock was up by over 25 per cent.

Elon Musk, who is CEO of Tesla, has bought a 9.2 percent stake, in Twitter. According to a regulatory filing on Monday, Musk acquired around 73.5 million shares.

Musk’s ownership in Twitter is classified as a passive investment, which suggests he is a long-term investor who wants to limit his buying and selling of the stock.

Musk, on the other hand, has been voicing concerns about the capacity to freely talk on Twitter, tweeting last month about free speech and the social media network, and industry observers were doubtful of the erratic CEO standing on the sidelines anywhere.

“We would anticipate this passive position to be just the beginning of larger discussions with the Twitter board/management that might eventually lead to an active stake and a potentially more aggressive ownership role for Twitter.” “WedBush Securities’ Dan Ives wrote in a client note early Monday.

Twitter’s stock climbed more than 25% before the market opened on Monday, while Tesla’s price increased modestly.

Musk, in addition to highlighting concerns about free expression on Twitter, stated in a subsequent tweet that he was “giving serious attention.” “to the development of a new social media platform

Musk has had run-ins with authorities over his use of Twitter.

Musk urged a federal judge early last month to overturn a securities regulators’ subpoena and to overturn a 2018 court deal that required Musk to have someone pre-approve his Twitter tweets.

US securities authorities said they had the legal jurisdiction to subpoena Tesla and Musk regarding his tweets, and that Musk’s attempt to overturn a 2018 court order requiring his tweets to be pre-approved is invalid.

Musk’s disclosure regarding his investment in Twitter shares comes only two days after Tesla Inc. reported disappointing first-quarter manufacturing figures.

While the business delivered 310,000 automobiles throughout the time, this was significantly lower than expected.

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