(Reuters) – The US Securities and Exchange Commission is investigating Tesla Inc.’s CEO Elon Musk’s revelation of its stake in Twitter Inc. in early April, according to a letter the agency sent to him in April.
In the letter, now published by the SEC, Musk’s regulator asks why he does not appear to have submitted the necessary paperwork within 10 days of the acquisition, and to provide more information about his public statements on the platform regarding whether Twitter follows freedom of expression principles.
Specifically, the SEC asked Musk to explain why he ultimately chose to file a 13G disclosure form, which is intended for investors who plan to hold their shares passively instead of a “13D” form, which is for activist investors who intend to to influence the company’s management and policy.
Spokesmen for the SEC and Mr. Musk did not immediately respond to requests for comment.
External experts had previously said that Musk’s late report, and that he may have used incorrect paperwork, could attract the attention of the SEC, which has sparred with Mr. Musk earlier.
The SEC’s letter is dated the same day that Musk revealed a 9.2% share in Twitter. The billionaire, who has since offered to take Twitter privately for $ 44 billion, has been sued by investors who claim that he has manipulated the company’s share price downwards.
Tesla’s CEO has been in trouble with the SEC in the past, when the agency sued him in 2018 after he tweeted that he had “secured financing” to potentially take the electric car company privately for $ 420 per share. In reality, a buyout was not close.