Analysts say Billionaire Elon Musk’s reversal of his decision to join the Twitter board is likely to drive volatility in the stock.
Last week Musk and Twitter said he would be joining Twitter’s board after revealing the Tesla CEO has a 9.2% stake in the social media platform.
Twitter shares fell on the news of Musk’s reversal during premarket trading, but rose by 2 per cent by Monday morning.
In case you missed it, Elon Musk went on a tweetstorm over the weekend.
He proposed no ads, slashing the price of twitter’s premium service and pay via crypto.
But the Tesla and SpaceX CEO appears to have deleted several tweets after dropping the plan to be on the firm’s board.
Many analysts now wonder if Musk will pursue a hostile takeover of Twitter, without the constraints he would have had on the size of his stake in the company.
Musk’s decision not to join Twitter’s board means he’s no longer limited to owning just 14.9% of the company.
Some say this could bolster his stake and eventually try and establish control.
