SEC Launches Probe of Elon Musk’s Initial Twitter Stake Purchase

The SEC is investigating Tesla CEO Elon Musk’s disclosure of his stake in Twitter according to a recent letter sent by the agency.

The New York Post reports that the SEC has launched an investigation into Tesla CEO Elon Musk’s disclosure of his stake in Twitter in early April. In the letter, the SEC asked Musk why it appears that he did not file the required paperwork within 10 days of the acquisition.

The SEC demanded more information from Musk on his public statements regarding whether Twitter adheres to free speech principles. The commission also asked Musk to explain his decision to file a 13G disclosure form which is usually filed by investors that plan to hold their shares passively. The SEC asked Musk why he didn’t file a 13D form which is for activist investors aiming to influence the management and policies of the company they have invested in — something which Musk had clear plans to do.