A day after Tesla chief and SpaceX founder Elon Musk disclosed a 9.2 per cent stake in Twitter, the microblogging platform on Tuesday announced that the billionaire and top shareholder will be on its board, according to an SEC filing.
Announcing the same, Twitter CEO Parag Agrawal expressed his excitement to welcome Musk on the board. "Through conversations with Elon in recent weeks, it became clear to us that he would bring great value to our Board," he posted from his personal handle.
Musk was quick to reply to Agrawal's tweet and posted: "Looking forward to working with Parag & Twitter board to make significant improvements to Twitter in coming months!"
Musk will serve as a Class II director, with the term expiring at Twitter's 2024 annual meeting of stockholders.
"For so long as Mr. Musk is serving on the Board and for 90 days thereafter, Mr. Musk will not, either alone or as a member of a group, become the beneficial owner of more than 14.9% of the Company’s common stock outstanding at such time, including for these purposes economic exposure through derivative securities, swaps, or hedging transactions," the company filing added.
Twitter shares surged 6 per cent in trading before the opening bell, after closing up over 27 per cent on Monday.
Late March, the Tesla chief and SpaceX founder said he was giving "serious thought" to building a new social media platform.
A prolific user of Twitter himself, Musk has been critical of the social media platform and its policies of late. He has said the company is undermining democracy by failing to adhere to free speech principles.
Meanwhile, Tesla on Saturday reported record electric vehicle deliveries for the first quarter, but its production fell from the previous quarter as supply chain disruptions and a China plant suspension weighed.
"This was an *exceptionally* difficult quarter due to supply chain interruptions & China zero Covid policy," CEO Elon Musk tweeted.
Tesla delivered 310,048 vehicles in the quarter, a slight increase from the previous quarter, and up 68% from a year earlier.