The purchase of shares on Twitter by Tesla CEO Elon Musk has caught the attention of the Securities and Exchange Commission. The agency sent a letter to Musk in April, which had already been circulated.
The letter asks Musk why he did not submit the necessary documents to reveal that he had accumulated a 5% share in the social network within the required 10-day period. The agency also wants information on his statements about Twitter’s ability to adhere to freedom of speech, which Musk challenged and cited as the main reason for acquiring the platform.
“Dear Mr. Musk,” the letter begins. “We have reviewed the document with the inscriptions above and we have the following comments. Our comments require additional information so that we can better understand your disclosure. Please reply to this letter by providing the requested information. If you do not believe that our comments relate to your facts and circumstances, please let us know why in your reply. After reviewing any information provided in response to these comments, we may have additional comments. “
The letter then outlines four key issues regarding Musk’s acquisition of the shares on Twitter. “Please let us know why the 13G list 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 you have submitted that you have relied on to submit a submission, ”he asked one of the questions. 13G forms are designed for investors who plan to keep their shares passive, according to the New York Post. The 13D forms are for activist investors, which, based on Musk’s comments and plans for Twitter, would be a more appropriate form.
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The fourth question delves a little deeper into this, as it reads: “Please provide us with a brief analysis of the grounds on which you consider that you are entitled to rely on Rule 13d-1 (c) to apply under Annex 13G. Your response should relate, among other things, to your recent public statements on the Twitter platform about Twitter (the publisher), including statements questioning whether Twitter (the publisher) “strictly adheres to” the “principles of freedom of the word “.”
This is just another page in the long history of Musk against the SEC. The frontman of Tesla and the agency have been arguing back and forth for several years, starting when Musk hinted that he could take Tesla privately at a price of $ 420 per share in 2018. “Funding is provided,” said the famous Musk. This tweet is still the subject of a major lawsuit between Musk and Tesla shareholders and is expected to enter federal courtroom in January 2023.
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Elon Musk’s Twitter share has caught the SEC’s attention
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