Stock Markets9 minutes ago (May 27, 2022 12:49PM ET)
By Sam Boughedda
Investing.com — The U.S. Securities and Exchange Commission (SEC) is looking over Tesla (NASDAQ:) CEO Elon Musk’s disclosure of his initial stake in Twitter (NYSE:).
The SEC sent a letter, dated April 4, to Musk asking why the required paperwork was not filed within the required 10 days from the date of acquisition.
It also asks Musk to address his recent public statements made on Twitter regarding the social media platform and whether it “rigorously adheres to” “free speech principles.”
The SEC requested Musk’s reasoning for filing a “13G” form instead of a “13D” form. A 13G form is usually filed for investors who plan to hold a passive stake, while a 13D is for investors who plan on “changing or influencing the control of the issuer.”
It’s not the first time Musk has been in trouble with the SEC. The regulatory body sued him in 2018 following previous tweets in which he said funding was secured to potentially take Tesla private at $420 per share.
Tesla shares are up more than 6% Friday.