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Musk’s Late Twitter Stake Report May Anger SEC
Elon Musk, the CEO of Tesla and SpaceX, has once again found himself in hot water with the Securities and Exchange Commission (SEC) over his use of Twitter. Musk’s latest tweet, which was posted late on Friday night, revealed that he had purchased $10 million worth of Tesla stock. This tweet, which came after the markets had closed, may have violated SEC rules regarding the disclosure of material information.
The SEC has been keeping a close eye on Musk’s Twitter activity ever since he tweeted in August 2018 that he had secured funding to take Tesla private. This tweet, which was later revealed to be false, led to a lawsuit from the SEC and a $20 million fine for Musk. As part of the settlement, Musk agreed to have his tweets about Tesla pre-approved by a company lawyer.
Musk’s latest tweet, however, was not pre-approved by a lawyer and was posted after the markets had closed. This means that investors who were not following Musk on Twitter may have missed out on important information that could have affected their decision to buy or sell Tesla stock.
The SEC has not yet commented on Musk’s latest tweet, but it is possible that they may take action against him for violating the terms of his settlement. If the SEC does decide to take action, it could lead to further fines for Musk and could damage his reputation as a CEO.
Musk has been known for his controversial use of Twitter in the past, and this latest incident is just one example of how his tweets can have a significant impact on the markets. While Musk may argue that he was simply sharing information with his followers, the SEC may see it differently and may view his tweet as a violation of their rules.
In the end, it remains to be seen what action the SEC will take against Musk, but one thing is clear: his late Twitter stake report may anger the SEC and could lead to further legal trouble for the Tesla CEO. Investors who are considering buying or selling Tesla stock should keep a close eye on this situation and should be prepared for any potential fallout from Musk’s latest tweet.