Twitter (TWTR) CEO Parag Agrawal shared on the network platform Sunday night that Tesla's (TSLA) CEO Elon Musk had decided not to join the company's board of directors, an appointment that would have started April 9. Over the weekend, Musk had shared several tweets critical of Twitter and its leadership, which he has since deleted. Among those were suggestions and jokes about the microblogging platform, including a proposal that people who sign up for Twitter Blue should receive an authentication checkmark and another one saying Twitter should convert its San Francisco headquarters to a homeless shelter "since no one shows up anyway." Commenting on the news, Wedbush analyst Daniel Ives said he believes the Twitter board and Musk could not come to an agreement around the executive's communications with the public over Twitter, and sees the move leading to a host of scenarios including Musk joining up with a private equity partner and forcing major strategic changes at Twitter and possibly a sale.

NOT JOINING BOARD: Parag Agrawal, CEO of Twitter, stated in a tweet that, "Elon has decided not to join our board. I sent a brief note to the company, sharing with you all here." "We announced on Tuesday that Elon would be appointed to the Board contingent on a background check and formal acceptance. Elon's appointment to the board was to become officially effective 4/9, but Elon shared that same morning that he will no longer be joining the board. I believe this is for the best... Elon is our biggest shareholder and we will remain open to his input. There will be distractions ahead, but our goals and priorities remain unchanged. The decisions we make and how we execute is in our hands, no one else's. Let's tune out the noise, and stay focused on the work and what we're building," according to the executive note.

CRITICAL TWEETS: Over the weekend, CEO Elon Musk proposed a Twitter Blue shake-up, saying in a series of tweets that, "Everyone who signs up for Twitter Blue (ie pays $3/month) should get an authentication checkmark... But should be different from 'public figure' or 'official account' checkmark... Blue already has a modifiable 20 second time to edit tweet feature... And no ads. The power of corporations to dictate policy is greatly enhanced if Twitter depends on advertising money to survive... Price should probably be ~$2/month, but paid 12 months up front & account doesn't get checkmark for 60 days (watch for CC chargebacks) & suspended with no refund if used for scam/spam." He also suggested that Twitter converts its San Francisco headquarters to a homeless shelter "since no one shows up anyway." Musk has since deleted these tweets.

Additionally, Tesla's CEO asked his Twitter followers if the social media network was dying. "Most of these 'top' accounts tweet rarely and post very little content. Is Twitter dying?"

HOST OF SCENARIOS: Commenting on the news, which he sees as "another shocker," Wedbush analyst Daniel Ives said he believes the Twitter board and Musk could not come to an agreement around Musk's communications with the public over Twitter as he likely needed to take a more back seat, quiet stance as part of joining the board. This now goes "from a Cinderella story" with Musk joining the Twitter board and keeping his stake under 14.9%, helping move Twitter strategically forward, to likely a "Game of Thrones" battle between Musk and Twitter, with the high likelihood that Elon takes a more hostile stance toward Twitter and further builds his active stake in the company, the analyst contended.

Ives thinks Musk no longer joining the Twitter board could lead to a host of scenarios, including joining up with a private equity partner and forcing major strategic changes at Twitter or potentially a sale, creating more noise and angst for Twitter's board and executives with various proposed platform changes. It may also be possible that Musk says "game over," reduces his stake, and goes home, the analyst noted. Ives maintained an Outperform rating on Tesla with a price target of $1,400 as he sees no risk from this Twitter situation impacting shares of Tesla or Musk's focus.

Also commenting on what he called Musk's "dramatic one-eighty at Twitter," Gordon Haskett head of event-driven research, Don Bilson, said "with Musk, it is always best to expect the unexpected." Bilson adds that he was "surprised" Musk accepted this appointment in the first place since "it presumably came with a muzzle." "Still, this reversal caps a topsy turvy week" for Twitter, Bilson stated. The analyst also pointed out that Musk, no longer capped by last week’s standstill, is presumably free to keep buying and that threat may convince Twitter it is time to "swallow a poison pill." "Rather than get too hung up on the details of what happened and when, we’re more focused on the big picture," the analyst said, adding that what he sees is a "volatile figure" who can now keep on dragging the company in public.

MUSK'S STAKE IN TWITTER: In a regulatory filing, Twitter disclosed that on April 4, the company entered into a letter agreement with Elon Musk, which provides that the company will appoint Musk to the company's board of directors to serve as a Class II director with a term expiring at the company's 2024 annual meeting of stockholders. For so long as Musk is serving on the board and for 90 days thereafter, he would not, either alone or as a member of a group, become the beneficial owner of more than 14.9% of the company's common stock outstanding at such time, including for these purposes economic exposure through derivative securities, swaps, or hedging transactions, the agreement also stipulated. This came after the executive revealed a 9.2% stake in the social media company.

PRICE ACTION: In Monday morning trading, shares of Twitter have been volatile, alternating between gains and losses. Near 11 am ET, the shares are down about 1% to $45.85.