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The Securities and Exchange Commission confirmed on Friday that it had asked Tesla CEO Elon Musk about irregularities in how and when he revealed his investment on Twitter.
In a letter dated April 4, the day Musk’s investments in the company were made public through a document, the regulator asked him why he listed his stake as a liability while making public statements. about the company. He also asked why he had 10 days to disclose his investment.
Musk changed his investment status to an asset the next day.
The letter confirms that the SEC is investigating the circumstances of the purchase of Twitter shares by Musk, which began in early 2021 and culminated in its agreement to take over the entire company for $ 44 billion. dollars. The investigation could result in a fine, but is unlikely to affect the deal itself. The Wall Street Journal reported in early May that the SEC was investigating Musk’s purchases.
Elon Musk delayed filing a form and earned $ 156 million
Musk has often spoken to the SEC in the past and paid a $ 20 million fine in 2018 for allegedly misleading investors when he tweeted that he had raised enough funding to take Tesla privately.
While buying shares of Twitter, he missed the deadline to notify the market in 11 days, which allowed him to continue buying shares at a lower price than they could have been if other investors knew he was buying. The delay saved him $ 156 million, according to securities experts.
Elon Musk did not respond to a request for comment. SEC spokesman Cory Jarvis declined to comment.