Musk risks new fight with SEC over late report on Twitter stake

Tesla CEO Elon Musk may have just picked another battle with the Securities and Exchange Commission (SEC), setting up a potential showdown over how he disclosed his investment in Twitter.

According to Fox Business, the Tesla CEO on Monday disclosed that he had acquired a 9.2 per cent stake in Twitter — making him its largest shareholder — in an SEC form that investors are required to file when they own more than 5 per cent of a company.

The filing, dated March 14, revealed that Musk bought about 73.5 million shares for roughly $2.9 billion.

But security law experts say the filing came several days later than it should have because the SEC requires anyone who acquires more than 5 per cent of a company’s common share to disclose their holdings with 10 calendar days.

Musk appears to have waited 21 days after March 14 to file the form, the report said.

A spokesperson for Musk did not immediately respond to a request for comment.

On top of that, the document that Musk registered with the SEC — form 13G — indicates that he planned to be a passive investor and that he did not intend to take on a larger role with the company.

Those forms require the shareholder to include a certification saying they did not acquire the shares to influence or control the company. Musk did not include that statement on his form; he wrote “not applicable”.

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