Buying Elon Musk shares on Twitter has caught the attention of the SEC

The purchase of Tesla CEO Elon Musk’s stock on Twitter has caught the attention of the Securities and Exchange Commission. The agency sent Musk a letter in April, which has now been released.

The letter asks Musk why he did not submit the required paperwork, which would reveal that he had collected 5 percent of the social network’s stake, in the required ten-day period. In addition, the agency is requesting information about his statements regarding Twitter’s ability to adhere to freedom of expression, which he challenged Musk and cited as a primary reason for acquiring the platform.

The message begins with “Dear Mr. Musk”. We have reviewed the above filing and have the following comments. Our comments request additional information so that we can better understand your disclosure. Please respond to this letter by providing the information requested. If you do not believe our comments apply to your facts and circumstances, please advise us of the reason for Your response. After reviewing any information provided in response to these comments, we may have additional comments.”

The letter then outlines four key questions regarding Musk’s acquisition of Twitter posts. “Please let us know why Schedule 13G does not appear to have been made within the required 10 days from the acquisition date as required by Rule 13d-1(c), the rule under which you have been certified to make the submission, asks one of the questions. Custom 13G forms For investors who plan to hold their shares passively, New York Post mentioned. 13D models are for active investors, which, based on Musk’s comments and plans for Twitter, would be the most appropriate format.


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Question 4 delves into this a little deeper, stating, “Please provide us with a brief analysis of the grounds upon which you have determined that you are eligible to rely on Rule 13d-1(c) to make the registration on Schedule 13G. Your answer should address, among other things , your recent public statements on the Twitter platform regarding Twitter (the issuer), including statements questioning whether Twitter (the issuer) “is in strict compliance with the Principles of Freedom of Expression”.

It’s just another page in Musk’s long story against the Securities and Exchange Commission. The Tesla attacker and the agency have battled back and forth for several years, beginning with Musk hinting that he might take Tesla private at $420 per share in 2018. “The funding is guaranteed,” Musk said. The tweet is still the subject of a major lawsuit between Musk and Tesla shareholders and is due to hit a federal courtroom in January 2023.

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Buying Elon Musk shares on Twitter has caught the attention of the SEC

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