Twitter Inc (NYSE:TWTR) shares are trading higher Tuesday after the company announced that Tesla Inc (NASDAQ:TSLA) CEO Elon Musk will be appointed to Twitter's board.
According to a Form 8-K filing with the U.S. Securities and Exchange Commission, Twitter will add Musk to its board of directors to serve as a Class II director with a term expiring in 2024 at the company's annual shareholder meeting.
As long as Musk serves on the board, he will not be allowed to own more than 14.9% of Twitter's outstanding stock.
On Monday, Musk disclosed a 9.2% passive stake in the social media company. Musk purchased 73,486,938 Twitter shares with sole power to vote for nearly $3 billion, making the Tesla CEO the largest Twitter shareholder.
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TWTR 52-Week Range: $31.30 - $73.34
The stock was up 5.54% at $52.75 at press time, according to data from Benzinga Pro.
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