Elon Musk is likely to take one of three steps in his battle for Twitter, Wedbush says
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Following Twitter's (NYSE:TWTR) decision to adopt a poison pill provision at its Friday board meeting in an effort to prevent Elon Musk from taking over the company, Wedbush Securities analyst Dan Ives believes the world's richest man could take one of three possible options as his next step in this fight. 
In a note to clients, Ives who covers Tesla (TSLA), noted that the first step would be to "formally lay out his financing" for Twitter, perhaps by putting debt and collateral of Tesla and SpaceX stock, as well as a vision for his strategy in a letter and presentation to Twitter's (TWTR) board of directors and shareholders.
"Given Muskâs antics over the years as well as comments at last weekâs TED conference, the Street remains skeptical on this bid and more details need to be highlighted to get more investors on board and increase pressure on the Board," Ives wrote in a note to clients.
Twitter (TWTR) shares gained nearly 4% in premarket trading on Monday to $46.78.
The second option for Musk, who owns 9.2% of the company and is its second largest shareholder, would be to team up with a strategic partner and boost the bed for roughly $60 per share. Ives noted this price is likely seen as a "more appropriate level" by many shareholders.
Last week, Musk bid $54.20 per share in cash for Twitter (TWTR), just days after announcing he would not join its board of directors.
The third and most unlikely option, at least in Ives' eyes, is for Musk to sell his stock and walk away. 
Musk seemed to suggest this is an unlikely option, as over the weekend, he tweeted, "Love me Tender," a lyric to an Elvis Presley song, which may also mean he is considering a tender offer to Twitter (TWTR) shareholders. 
It's also possible that another option emerges, Ives pointed out, such as a second bidder for the company, perhaps from private equity. On Friday, it was reported that private equity firm Thoma Bravo was looking at buying Twitter (TWTR). Ives mentioned it's unlikely that Twitter would be bought by private equity, due to its business model and low free cash flow.
"In a nutshell, this week is very important for all the parties involved in this Twitter soap opera with time to get out the popcorn," Ives wrote.
Investment firm MKM Partners recently said that online advertising would start to feel the weight of macroeconomic concerns this year, which may impact a number of companies, including Twitter (TWTR).