Why Twitter Shares Are Trading Higher Today

Twitter Inc TWTR shares are trading higher Tuesday after the company announced that Tesla Inc 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. 

See Also: 18 Stocks Moving in Tuesday's Pre-Market Session

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.

Photo: Stock Catalog from Flickr.