Elon Musk to join Twitter’s board of directors

Twitter said in a regulatory deposit Tuesday that it plans to appoint the CEO of Tesla and SpaceX to its board of directors for a term ending in 2024. As part of the deal, Musk agreed to take no more than 14.9% of the company’s shares while he remains on the board.

“I am excited to share that we have appointed elonmusk to our board of directors!” Twitter CEO Parag Agrawal said in a tweet Tuesday. “Through conversations with Elon in recent weeks, it has become clear to us that he will add significant value to our board of directors.”

Agrawal pointed That Musk is a “passionate believer” and “a heavy critic” of the company, and that he believes that having Musk on the board will add value in the long run. Jack Dorsey, co-founder and former CEO of Twitter, also appeared to welcome the news, stating that Musk “cares deeply about our world and Twitter’s role in it,” and that Musk and Agrawal “would be a great team.”

After rising more than 27% on Monday following the news of Musk’s stock purchase, Twitter shares are up Another 5% on Tuesday morning.

Twitter has become an important part of Musk’s personal brand. He’s used the site to connect with his legions of fans and to express their opinions on everything from Tesla’s stock price to current events. But his presence on the platform has also landed him in trouble, including when tweets about the possibility of Tesla taking a private case led to a SEC lawsuit and settlement requiring him to have certain tweets about the company previously reviewed.

“It’s time to pop the popcorn and watch developments over the coming months with Musk on the board,” Wedbush analyst Dan Ives said in an investor note on Tuesday. He added that Musk’s inclusion on the board could lead to “a set of strategic initiatives that could include a range of short- and long-term possibilities to get out of the gates of a company that is still struggling in an arms race on social media.”

Twitter spokesman Adrian Zamora noted Tuesday that even after joining the board, Musk will remain subject to his rules and community guidelines, and will not have a direct role in setting his policies.

“Twitter is committed to impartiality in the development and implementation of its policies and rules,” Zamora said in a statement provided to CNN Business. “Our policy decisions are not made by the board of directors or shareholders. As always, the board plays an important advisory and feedback role across all of our services. Our day-to-day operations and decisions are made by Twitter management and employees.”