Elon Musk adds $1B to fortune with Twitter investment as shares soar
Musk bought about 73.5 million shares for roughly $2.9 billion - a stake now worth $3.8B
How Twitter appointing Elon Musk to board of directors impacts stocks
Stuart Varney, Susan Li and Bahnsen Group managing partner David Bahnsen discuss how Twitter announcing it’s appointing Tesla and SpaceX founder Elon Musk to its board is impacting the stock market.
Tesla CEO Elon Musk likely added $1 billion to his already massive fortune this week after taking a 9.2% stake in Twitter.
Musk disclosed the purchase in a Securities and Exchange Commission filing at the beginning of the week, sending Twitter shares soaring: The stock closed up 27% on Monday and continued to climb higher on Tuesday, its biggest rally since its trading debut in 2013.
The filing, dated March 14, revealed that Musk bought about 73.5 million shares for roughly $2.9 billion. In the one day since he disclosed the purchase, those shares have increased in value to more than $3.8 billion.
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The investment also boosted the net worth of former Twitter CEO Jack Dorsey, who holds a 2.25% stake in the company, a position that is almost $200 million more valuable after Musk revealed his purchase.
ELON MUSK PURCHASES STAKE IN TWITTER AFTER SLAMMING ITS APPROACH TO ‘FREE SPEECH’
Musk's purchase comes about a flurry of criticism aimed at Twitter, which he has accused of stifling free speech. In a tweet on Tuesday, Musk hinted that hopes to make "significant improvements" to Twitter in the coming months after he was named to the company's board of directors, a term that expires in 2024.
"Looking forward to working with Parag & Twitter board to make significant improvements to Twitter in coming months!" Musk said in a tweet.
Although the new holdings make Musk the largest shareholder of the social media company, the bulk of his wealth is tied to shares and options in Tesla.
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Musk controls about 17% of the electric-vehicle maker, according to SEC filings. Tesla shares have surged in value in recent years, propelling the eccentric CEO to the top of a list of the world's wealthiest people. Musk is worth an estimated $288 billion, according to the Bloomberg Billionaires Index.
Tesla shares climbed on Monday after the company reported strong deliveries for the first quarter.