Twitter shares jumped 3% during early trading on Tuesday, after the company’s decision to appoint Elon Musk to its board of directors was disclosed in a release filed with the SEC. Musk became twitter’s largest shareholder highking its stock roughly 30% this week.

Musk was appointed to its board as a Class II director for a term that expires at the company’s 2024 annual shareholder meeting.

The appointment came after Musk took a 9.2% stake in the company, worth almost $3 billion, making him the company’s largest shareholder.

Twitter CEO Parag Agrawal said in a tweet, commenting on the decision said, “Through conversations with Elon in recent weeks, it became clear to us that he would bring great value to our Board.

“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.”

The latest surge in Twitter’s shares came after their best day of trading since the company’s IPO in 2013, with shares surging over 27% on Monday.

Musk, either alone or as a member of a group, will not be able to become a beneficial owner of more than 14.9% of Twitter stock for as long as he sits on the board and for 90 days after.
-RT