The news sent Twitter shares up about 25% in premarket trading. The stake is worth $2.89 billion based on Twitter’s stock price at Friday’s close and is equivalent to approximately 73.5 million shares.
Musk is an active Twitter user and has over 80 million followers, one of the highest on the site. He uses the platform to give updates on Tesla’s performance, but he also regularly tweets memes and sometimes controversial opinions. In the past, he was known for making small investments in startups, such as in DeepMind, but investing was never a big part of his business.
Twitter has posted a new filing with the SEC to disclose that an investor has now acquired a stake of more than 5% of the company’s outstanding stock – something he is required to do under SEC rules.