The amount of stock that Elon Musk, among the richest people on the planet and chief executive of SpaceX and Tesla, owns of Twitter Inc is a frequent topic of discussion and interest. Musk’s influence over the social media giant has become increasingly more important in recent months, as he has become one of the most prominent users of the platform, with nearly 35 million followers. Which fuels the curiosity further, surrounding how much of a stake Musk has in Twitter.
In 2020, Elon Musk had to make a statement about his involvement and investment in acquiring stock in Twitter, in an SEC form 4 filing. The statement discloses his acquisition of 21,452 shares of Twitter, completely in the open market on Feb 18, 2020. That puts Musk’s direct holdings in Twitter at 0.02%. However, this number doesn’t reflect any indirect or hidden interests.
Elon Musk has also chaired the board of Tesla Motors, the electric carmaker Tesla acquired in 2010. Prior to that, Musk co-founded PayPal and served as CEO of electronic payments venture. Based on this, it is assumed that Musk has acquired additional stock in Twitter by indirect holdings as part of his role as a private investor, or through one of his companies. Additionally, he serves as a board member of SolarCity, a solar energy firm which is partly-owned by his cousin.
Since Musk hasn’t revealed any further details including the amount of stock he holds in Twitter, we can’t make a definitive estimate of his exact holdings. We are also yet to know if he holds any additional shares in indirect holdings such as through trusts and other organizations that could own shares in Twitter.
The uncertainty surrounding Musk’s Twitter stock has resulted in intense speculation among Twitter followers, most of whom have invested in some way in the platform. According to market experts, Elon Musk possibly holds more than what can be disclosed in direct holdings, but it’s hard to estimate exactly how much.
Even if Musk doesn’t own any other stock in Twitter, the 0.02% figure he disclosed serves as an estimate. The impact this tiny percentage has on the platform, however, provides a remarkable glimpse into power and influence tech billionaires have over social media giants.
Impact On Social Media
Musk’s influence on social media has long been discussed, and has become even more pronounced as he has become one of the most followed personalities on Twitter. With his current level of influence, experts say that his indirect and direct holdings in Twitter are likely higher than the 0.02% figure, meaning that the power and influence he holds on the platform could be much greater.
It’s no secret that Musk has the potential to create a large wave of shifts in the market through his social media presence. A recent example of this was when he triggered a surge in the value of a certain digital currency called Dogecoin, just by tweeting in favour of it.
This highlights the power that powerful personalities on social media can possess over the stock markets, with just mere online comments and posts. Unambiguously, it’s unlikely that the investment Musk has made in Twitter for now, no matter how much, is enough to make a large impact in the long run.
However, holding any amount of stake in one of the most popular social media platforms and having the potential to shape it in the future makes one of the most powerful investors in tech.
Influence On Twitter Strategy
Elon Musk does not appear to have the formal direction and responsibility for Twitter, however, the influence that comes with his stake in the social media platform allows him to place his stamp and give direction to Twitter on a strategic level.
One example of this is when, in 2018, he requested that Twitter increase the character limit from 140 to 280 characters, which it later did following his suggestion. This gives us an insight into the direction Musk could take to shape the Twitter strategy, of which we may see the beginnings of in the coming days.
He continues to become more influential within the company and therefore, his actions and decisions on various topics will have increasingly greater effect on the company. This means that when it comes to making a decision about Twitter’s future, it would be wise to pay attention to what Musk has to say.
For instance, it’s possible that Musk may be instrumental in pushing for changes to the platform, especially in light of recent events, such as the protests against police brutality taking place in the United States. In this context, his ownership of Twitter stock could be influential in setting an agenda for the future of the platform.
Government Oversight
Elon Musk’s ownership of stock in Twitter has also been the subject of questions by governmental entities. In 2018, the Securities and Exchange Commission (SEC) viewed Musk’s announcement of plans to privatise Tesla as a violation of securities law, as he had not given proper notice of his intentions.
The SEC had previously raised concerns about Musk’s activities on the platform, including his tweets about taking Tesla private at $420 per share. This followed an investigation by the SEC into his tweets, which resulted in Tesla and Musk being charged with fraud and settled with a $20 million fine each.
The SEC seems to be keeping a closer eye on Musk’s involvement in Twitter, since he has become a prominent figure on the platform. This has resulted in speculation from industry watchers and experts about the possibility of governmental intervention into the private ownership of Twitter shares.
Investments made by figures such as Elon Musk have been the subject of scrutiny in the past. Accordingly, we can’t rule out the possibility that governmental authorities may be more inclined to investigate the holdings of Musk in Twitter, especially given his history of violating securities laws.
It’s unclear whether Musk will continue to invest or increase his stake in Twitter in the future. However, given his current level of involvement in the platform, it’s safe to assume that he is likely to remain a shareholder in the tech giant, at least in some capacity.
Analysts have speculated that if Musk were to increase his stake in Twitter, it could result in the stock price increasing. This is due to investors feeling more confident in the future of the platform and placing increased faith in the long-term success of the company.
Musk has previously spoken about his admiration for Twitter, saying that the platform “gives people power and is an important part of civil discourse”. This, combined with his track record of investing in major tech companies, could lead some speculators to believe that he may increase his stake in Twitter as a way to ensure the platform continues to serve its purpose in the near future.
His future plans for Twitter stock remain shrouded in uncertainties, but one thing is certain — Elon Musk’s influence over the social media giant will have profound consequences for its future.
Social Impact on Technology Industry
Elon Musk’s stake in Twitter has resulted in intense interest among tech enthusiasts, and what he does with his own shareholding of the platform will almost undoubtedly have a large ripple effect.
His shares in various companies, including Twitter, can be seen as a sign of his faith in the future of the technology industry. Without a doubt, his opinion and decisions have the potential to shape the industry in the future.
On the other hand, Elon Musk’s influence on the technology industry could inversely benefit the average user. As a Silicon Valley veteran and revolutionary, he is always on the forefront of technology developments and creativity. Therefore, his decisions and opinions on various platforms, including Twitter, could have a positive impact on the industry as a whole.
As we move forward, Musk’s increasing involvement in various platforms could further his desire to shape the industry, with social media being just one of the tools he can use to do so.
Changing Relationship Between Platforms and Billionaires
Elon Musk’s Twitter stock also highlights the changing relationship between tech billionaires and the platforms they own. In the past, tech firms have been quick to avoid the spotlight, and the involvement of their owners in shaping the direction of the business.
However, rapid advancements in technology, combined with increasing demand from users for more transparency, have necessitated a change in the relationship between tech billionaires and the platforms they own.
As individuals with considerable influence, many tech billionaires have realized the power of their own presence on social media and have started to use it as a tool to shape their companies in the game of business.
The tech giants have embraced this shift in the dynamics of their relationship with their owners, viewing the presence of influential figures such as Elon Musk as a way to make their platforms more attractive to users.
This trend is likely to continue as tech companies become more dependent on the presence of their owners and the investments made by them. Elon Musk’s decisions on his own investments, including Twitter, will therefore be closely followed in the tech industry.
