The purchase of shares on Twitter by Tesla CEO Elon Musk has caught the attention of the Stock Exchange Commission. The agency sent Musk a letter in April, which has now been published.
The letter asks Musk why he did not submit the required documentation, which would reveal that he has accumulated a 5 percent stake in the social media network, in the required 10-day period. In addition, the agency is seeking information on its statements about Twitter’s ability to adhere to free speech, which Musk has challenged and cited as its main reason for acquiring the platform.
“Dear Mr. Musk,” the letter begins. “We’ve reviewed the above presentation and have the following comments. Our comments require additional information so that we can better understand your disclosure. Please respond to this letter by providing the requested information. If you do not believe our comments are “apply to your facts and circumstances, please tell us why in your response. After reviewing any information provided in response to these comments, we may have additional comments.”
The letter then sets out four basic questions about Musk’s acquisition of Twitter shares. “Please tell us why Appendix 13G does not appear to have been made within the required 10 days from the date of acquisition, as required by Rule 13d-1 (c), the rule in which you stated that you trusted to make the presentation, “one of the questions is asked. The 13G forms are intended for investors who plan to keep their shares passively, the New York Post reported. The 13D forms are for activist investors, which, according to Musk’s comments and plans for Twitter, would be the most appropriate way.
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The fourth question goes a little deeper into this, as it says, “Please provide us with a brief analysis of the grounds on which you determined that you could rely on Rule 13d-1 (c) for make the submission of Appendix 13G .. Your response should address, among other things, your recent public statements on the Twitter platform about Twitter (the sender), including statements questioning whether Twitter (the sender) ) “adheres strictly to the principles of” “freedom of expression”.
It’s just one more page in Musk’s long history against the SEC. The Tesla leader and the agency have been fighting back and forth for several years, beginning when Musk hinted that he could take Tesla privately for $ 420 a share in 2018. “Funding secured,” Musk said. This tweet is still in high demand among Musk and Tesla shareholders and is expected to hit a federal courtroom in January 2023.
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The purchase of Elon Musk’s Twitter stock caught the attention of the SEC