The United States Securities and Exchange Commission (SEC) is investigating Elon Musk’s disclosure of his Twitter stake in early April, according to a letter sent by the agency to the billionaire.
In the document, now made public, the regulator asks Tesla’s CEO why it appeared he had not submitted the necessary documentation within ten days of the acquisition.
In addition, the SEC questioned why Musk, when he disclosed his stake, had used a form intended for passive investors, while openly questioning Twitter’s policies regarding free speech.
The SEC asked Tesla’s CEO to explain the reasons he had chosen to initially file a “13G” disclosure form, which is intended for investors who plan to passively hold their shares, rather than a “13D” form, which is for activist investors, that is, those who intend to influence the company’s management and policy.
Afterwards, Musk altered the form. Shortly after the initial disclosure of the participation, he was offered a seat on the Twitter board. Now, he is in the process of acquiring the company through a $44 billion deal.
Spokespeople for the billionaire did not respond to a request for comment. The SEC also declined to comment.
The consequences for Elon Musk are predictable. According to experts, the fines for the misstep would likely run into a few hundred thousand dollars.
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