SEC confirms it is investigating Elon Musk over Twitter share purchases

Latest / May 28, 2022 / DRPhillF / 0

The Securities and Exchange Commission confirmed Friday that it asked Tesla CEO Elon Musk about irregularities in how and when he disclosed his Twitter investment.

In a letter dated April 4, the day Musk’s investment in the company became public through a file, the regulator asked him why his stake was listed as negative while making public statements about the company. I also asked him why he missed 10 days to disclose his investment.

Musk changed his investment status to active the next day.

The letter confirms that the Securities and Exchange Commission is investigating the circumstances of Musk’s purchase of Twitter shares, which began in early 2021 and culminated in his $44 billion acquisition of the entire company. An investigation may result in a fine, but it is unlikely to affect the transaction itself. The Wall Street Journal reported earlier in May that the Securities and Exchange Commission is investigating Musk’s purchases.

Elon Musk delayed submitting a form and made $156 million

Musk has often quarreled with the Securities and Exchange Commission in the past, and was fined $20 million in 2018 for allegedly misleading investors when he tweeted that he had raised enough funding to make Tesla private.

While buying Twitter shares, he missed the market notification deadline of 11 days, which allowed him to continue buying shares at a lower price than he would have had if other investors had known he was buying it. According to stock experts, the delay could potentially save him $156 million.

Elon Musk did not respond to a request for comment. Corey Jarvis, a spokesman for the Securities and Exchange Commission, declined to comment.