Biden Admin Confirms Investigation into Elon Musk
U.S. Securities and Exchange Commission is investigating Tesla CEO
Democrat Joe Biden's Securities and Exchange Commission (SEC) has confirmed that it has launched an investigation into Tesla CEO Elon Musk.
The move comes as Musk prepares to buy Twitter for $44 billion.
The SEC confirmed the probe shortly after Musk recently announced he is turning his back on the Democratic Party and will now "vote Republican."
"In the past I voted Democrat, because they were (mostly) the kindness party,” Musk explained in a tweet.
"But they have become the party of division & hate, so I can no longer support them and will vote Republican."
"Now, watch their dirty tricks campaign against me unfold," Musk added.
The SEC is looking into why Musk allegedly made his disclosure late that he owned more than 5% of the company’s shares, which he must legally disclose within 10 days of meeting the threshold.
“The SEC also wants to know why Musk filed a ’13G’ form, which is meant for passive investors, rather than a ’13D’ form that would be for activist investors (including those with interest in making a takeover offer),” Axios reported.
“It’s important to note that the SEC’s letter came on the same day as Musk’s disclosure, which is before he offered to buy Twitter outright.”
The SEC said in its letter that it wants a response from Musk even if he does not believe that their “comments apply to your facts and circumstances.”
In the past I voted Democrat, because they were (mostly) the kindness party.— Elon Musk (@elonmusk) May 18, 2022
But they have become the party of division & hate, so I can no longer support them and will vote Republican.
Now, watch their dirty tricks campaign against me unfold … 🍿
“The case is easy. It’s straightforward,” Daniel Taylor, a University of Pennsylvania accounting professor, said.
“But whether they’re going to pick that battle with Elon is another question.”
A report earlier this month from The Wall Street Journal noted that a lawsuit against Musk from the SEC would likely not stop him from taking over Twitter since the company’s board of directors unanimously approved to be acquired by Musk and the SEC may lack the power to do so.
Musk’s purchase of Twitter is also reportedly being reviewed by the Federal Trade Commission (FTC).
Musk said a couple of days after The Wall Street Journal’s report that he was putting the sale on hold while he investigated the number of spam accounts on the platform.
“Twitter deal temporarily on hold pending details supporting calculation that spam/fake accounts do indeed represent less than 5% of users,” Musk tweeted, later adding, “Still committed to acquisition.”
Twitter has already started to make changes to its leadership following Musk’s purchase of the company.
“Kayvon Beykpour, Twitter’s general manager, is leaving and will be replaced by Jay Sullivan,” The New York Times reported.
“Mr. Sullivan is currently the interim general manager of the consumer product. Bruce Falck, Twitter’s general manager for revenue, is also departing the company.”
An internal company memo from CEO Parag Agrawal obtained by The New York Times said it was “critical to have the right leaders at the right time.”