After last week's announcement that Tesla, Inc. (TSLA) Chief Executive Officer (CEO) Elon Musk would join Twitter, Inc.'s (TWTR) board as a Class II Director and will serve for a term of two years, Twitter's CEO Parag Agrawal declared that Musk will not join the board. The news also comes after Musk acquired 9.2% of Twitter stock and after debates on whether Twitter should include an edit button for its tweets.
Twitter's shares fell 8% in pre-market trading after the news. Elon Musk's term would have started on April 9 after a formal acceptance and a background check. He will continue to be the largest shareholder of Twitter.
- Elon Musk will not join Twitter's board, although he will continue to be the company's largest shareholder.
- Musk has frequently used Twitter for his communications to investors.
- Twitter, whose ambitious plans have spurred internal changes in the past, saw its shares fall after the news.
Elon Musk has frequently used Twitter to communicate to Tesla's shareholders and has faced inquiries from the Securities and Exchange Commission (SEC) about his adherence to the SEC's rules regarding disclosure controls and procedures for communicating information that was of material interest to investors.
The specific reason why Musk will not join Twitter is unclear. Earlier, Musk had announced that he was seriously considering starting his own social media platform on the grounds the Twitter did not foster free speech. It remains to be seen if Musk will turn back to his earlier plans now that he will no longer be entering Twitter's boardroom.