Suspicions are raised that Elon Musk, who became Twitter’s largest shareholder, violated the U.S. securities law.
According to Reuters on the 5th (local time), Musk, Tesla CEO (CEO), announced that he had a 9.2% stake in Twitter the previous day.
According to the official data, the event took place on March 14, 2022. The U.S. Securities Act requires disclosure within 10 days if it holds a 5% stake or more.
Therefore, Musk is expected to pay a maximum fine of 207,183 dollars due to the delay in the disclosure. Musk, who has a net worth of $302 billion, could be just a slap on the wrist.
However, at a time when the SEC (Securities and Exchange Commission) is investigating for mentioning the sale of Tesla shares, suspicions of stock price manipulation related to the purchase of Twitter shares could be investigated. This could lead to severe sanctions.
In addition, Musk announced that the purpose of purchasing a stake in Twitter was “passive investment.” However, it was revealed that he would immediately join the board to push for Twitter’s change. In one day, Musk changed his purpose of buying shares to participate in management.
Meanwhile, the SEC and Tesla did not respond to a request to express their position. Tesla shares fell 4.7 percent to close at 1,091.26 dollars, down 1,100 dollars.
