The billionaire investor bought 73,486,938 shares of Twitter stock for a 9.2% stake in the company, an SEC filing showed. The holding is worth about $2.9 billion, based on the stock’s closing price of $39.31 Friday.
Twitter’s stock was up 25% at $49.30 in pre-market trading, as of 7 a.m. ET on Monday.
Musk last week criticized Twitter and suggested he might create his own social media platform.
“Free speech is essential to a functioning democracy. Do you believe Twitter rigorously adheres to this principle?” Musk tweeted in a March 25 poll.
Musk followed this up with a series of tweets the next day, writing: “Given that Twitter serves as the de facto public town square, failing to adhere to free speech principles fundamentally undermines democracy. What should be done?”
In a response to a suggestion by one Twitter user that he creates his own social media platform, Musk responded: “Am giving serious thought to this.”
Musk has run into issues with the SEC over his use of Twitter.
The SEC charged Musk with misleading investors in 2018 after he tweeted saying he was “considering taking Tesla private at $420” per share.
Musk and Tesla settled the charges and as part of a settlement with the SEC. Tesla was required to approve any of Musk’s tweets containing information that could impact the company’s stock price.
Musk wants this part of the agreement scrapped, arguing in a recent filing that it violates his free speech and is only grounds for a “continuing and harassing investigation.”
However, earlier this month, the Securities and Exchange Commission said it wouldn’t drop this part of the agreement.