An SEC filing unveiled on Monday revealed the Founder/CEO of Tesla Inc (TSLA: US), Elon Musk, as the owner of a 9% stake in Twitter Inc (TWTR: US). The filing stated that Musk had ownership over 73,486,938 shares of TWTR stock.

Needless to say, this eye-popping news has caused the social media platform’s stock to soar to new heights landing at a price increase of 27.13% in a single day. 

The Infamous Filing

The announcement of Musk’s ownership came on April 4, 2022. The day before, TWTR stock had closed at $39.31. On Monday, the share price went as high as $51.37, before landing at a closing value of $49.97. The social media giant has a current M Cap of $31.34 B. 

In the American stock market, a 13 G Form is where a company’s investor unveils his beneficial ownership greater than 5% of the company’s total stocks in the market. Musk filed this form accordingly on April 4, 2022, after having previously purchased TWTR shares on March 14, 2022. The form mentions that the shares would be held by the Elon Musk Revocable Trust, which is the same trust holding Musk’s shares in his own company.

An Insider transaction Form would have been filed instead of a 13G given the circumstance that Musk’s ownership exceeded 10% stake in Twitter.

In contrast, the stake owned by Twitter’s co-founder and former CEO, Jack Dorsey is 2.25%. 

The Meaning Behind It

While this news has been the fuel to Twitter’s shares skyrocketing, it is ironic that Musk, who in Dec’21 was named Time’s Person of the Year, himself has been vocal about the social media platform. He questioned whether or not the platform advocates and implements the concept of ‘free speech’. On March 25, he tweeted a poll asking his followers’ opinions on this subject. The result was that nearly 70.4% of followers said no. 

This poll was tweeted by Musk after he had purchased his TWTR stake. Not too long ago, Tesla was discussed amongst netizens for being snubbed on Time’s list of 100 most influential companies. 

Twitter just saw the change made last year when Parag Agrawal was appointed as the company’s new CEO. While Dorsey will leave Twitter’s Board of Directors in May, a blast from the past hints that Musk might be taking on the same role that Elliot Management - also a TWTR shareholder - took up against the social media company in 2020. 

Musk, it appears, is taking his role as Twitter’s shareholder seriously, considering he recently posted a tweet asking users whether they want an edit button. While Twitter has remained mum about the filing, CEO Agarwal replied to Musk’s tweet less than hour later stating, “The consequences of this poll will be important.”

Later in the evening of the same day, Agrawal took to Twitter and welcomed Elon Musk to the company's Board of Directors.  The CEO went on to state that Musk possesses the critical voice and passion that is much needed at the platform's offices.

Analysts speculated that this would lead regulators to pour into Twitter, and also attract advertisers to the platform. As previously stated, the astonishing price rise of TWTR is proof that Musk’s stake could do wonders for the company’s stock. But it can have a startling effect on the platform’s policies.