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Shares were up more than 6% in premarket trading.
“Through conversations with Elon in recent weeks, it became clear to us that he would bring great value to our Board,” CEO Parag Agrawal said in a tweet.
“He’s both a passionate believer and intense critic of the service which is exactly what we need on Twitter, and in the boardroom, to make us stronger in the long-term,” he added.
Musk’s term is set to expire in 2024, according to the filing. For his entire board term or 90 days after, Musk cannot be the beneficial owner of more than 14.9% of the company’s common stock outstanding.
Musk’s purchase comes after a bout of criticizing the social media company. The outspoken Tesla CEO polled people on Twitter last month about whether it adheres to free speech principles. He added that he was considering building a new social media platform.
After he was named to the board, Musk on Tuesday teased he would push for adjustments.
“Looking forward to working with Parag & Twitter board to make significant improvements to Twitter in coming months!” Musk said in a tweet.
Musk’s stake, while the largest among outside shareholders, is considered a passive interest, which often means the holder isn’t trying to control or influence the company. Still, some investors expected Musk to take an aggressive stance.
Hours after his holding in the company was revealed, Musk took to Twitter to poll users on interest in an edit button. Agrawal retweeted the post, urging people to “vote carefully” as the consequences “will be important.”
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