Part Two
Elon Musk and the SEC always have a bone to pick with each other. The SEC, being a government organization that looks over what is one of the ever-changing parts of the economy, doesn’t like when people step out of their place or do something unusual. Elon Musk, on the other hand, likes to step out of his place and do anything unusual all the time. Their first major scuffle came when Musk used his handy-dandy Twitter account to announce that he was considering taking Tesla private at $420 per share, which sent the share price soaring. The SEC said that this tweet was completely false and misleading, and aimed to strip him from being a CEO. They reached a settlement, and they’ve had minor run-ins ever since.
Musk might need to prepare for another one, unfortunately, as his stake in Twitter could cause regulatory concerns. On Tuesday, he officially joined the board of directors of Twitter, adding some more legal crossover. It looks as if Musk didn’t file his purchase correctly, with missing requirements like a certificate that states his role as a passive investor only. It’s reported that on his form, he answered “Not Applicable,” which is as vague as it gets. Additionally, the SEC is questioning his intent when it comes to his stake in Twitter. Although he claims to be a passive investor, his tweets certainly don’t show that. The ones where he mentions the idea of a new social media company and the poll about Twitter’s free speech gives off activist investor vibes, which would violate his position. Musk has defense, as always, but this adds an interesting fold in this saga.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.
