Elon Musk’s recent purchase of a 9.2 percent stake in Twitter may have moved the prices of the social media company’s stock, but for one Tesla investor, the investment is “meaningless.” Ron Baron, the CEO of Baron Capital, is one of Tesla’s biggest shareholders but he thinks that Musk’s investment in Twitter and his resulting board seat does not amount to much.

Share Market Live

NSE

“I think it’s meaningless,” he told CNBC. “It’s a tiny investment. $3 billion for a man who is worth $300 billion. He has Tesla which is worth a trillion (and) on the way to being worth $3 or $4 trillion.”

Also read: Elon Musk is on Twitter board: What does it mean for the microblogging site?

“There’s no way this could be anything meaningful to him,” added the long-term Tesla bull.

Though Twitter shares rose by 27 percent after Musk’s announcement, Baron’s company had chosen to not invest in the social media giant. Twitter’s stock has long underperformed when compared to other tech giants like Meta, Alphabet, Apple and others.

But Musk’s investment marks another instance of a centi-billionaire breaking into media organisations, even though many would not like to characterise Twitter as one. Musk, with his strong opinions, is expected to bring changes to how the social media platform is run.

Also read: Elon Musk has been working on 'Master Plan Part 3'; what could it be about?

Will Musk bring back Trump?

Twitter’s boardroom may be transforming into a tense battleground for different interests. Apart from Musk’s influential presence, other major presences in the Twitter boardroom are activist investor Elliott Management and Silver Lake’s Egon Durban.

One expected change that Elon Musk is expected to bring to the platform is the relaxation of its content policy over what is allowed and what is not, according to observers and experts. One such instance of ‘relaxation’ may be the lifting of the lifetime ban on former President Donald Trump, Anupam Chander, a professor in global internet regulation at Georgetown University told Financial Times.

Also read: Elon Musk posts poll on Twitter edit button; CEO Parag Agrawal warns of 'consequences'

Trump had been banned off the platform for his inflammatory statements, which led to the January 6 Capitol Hill insurrection that happened in the wake of his loss in the 2020 US presidential elections.