(CNBC) Shares of the social media giant rose more than 25% in premarket on Monday after Tesla CEO Elon Musk bought around 9% of stake in the company.
The total shares of Musk in the social media giant were 73,486,938, making him the largest shareholder in the company.
The stake, worth $2.89 billion, was revealed through a Securities and Exchange Commission and occurs after Musk criticized the social media company for failing to protect the tenets of free speech.
Wedbush analyst Dan Ives says Musk’s stake could be a sign of an intended move to take an aggressive role on Twitter. He expects the move to lead to some form of buyout.
Musk has a strong follower base on Twitter, with more than 80 million fans. His frequent tweets have often been flagged by the US Securities and Exchange Commission.
TWTR: NYSE is up +25.06% on premarket, TSLA: NASDAQ is up +0.76% on premarket
