This Analyst Expects Elon Musk to Go Activist on Twitter (TWTR) Following 9.2% Stake

Wedbush analyst Daniel Ives weighed in on the news that Tesla (NASDAQ: TSLA) CEO Elon Musk has acquired a 9.2% stake in Twitter (NYSE: TWTR). According to Ives, "this is just the start" and he expects him to become an activist in the stock.

Ives commented: "Given Musk's long standing critical view of Twitter and social media platforms, it was viewed that Musk could look to build a new social media platform to compete with Twitter and others. Instead it looks like Elon has his eyes laser set on Twitter and we would expect this passive stake as just the start of broader conversations with the Twitter board/management that could ultimately lead to an active stake and a potential more aggressive ownership role of Twitter. We will be following Musk's comments/future regulatory filings closely to see if Musk ultimately pursues further conversations with the Twitter board and/or goes to an active stake and above the key 10% threshold. For Tesla purposes, we view this move as Musk just further building out his tentacles and we are not worried in any way around Musk "taking his eye off the ball" with Tesla/SpaceX."

The reiterated an Outperform rating and $1,400.00 price target on TSLA.

For an analyst ratings summary and ratings history on Tesla click here. For more ratings news on Tesla click here.

Shares of Tesla closed at $1084.59 yesterday.

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