The SEC is Investigating About Elon Musk's Comments About Twitter Deal

135
16 Jul 2022
6 min read

News Synopsis

The US Securities and Exchange Commission questioned Elon Musk last month about a tweet in which the world's richest person expressed doubts about proceeding with his $44 billion acquisition of Twitter Inc due to concerns about the number of fake users on the platform.

According to a June 2 letter made public on Thursday, the Securities and Exchange Commission (SEC) asked Musk whether he should have amended his public filing to reflect his intention to suspend or abandon the deal.

The agency was referring to his May 17 tweet, in which he stated that the "deal cannot move forward" until Twitter provided more information about how it dealt with fake accounts.

The letter shows that the SEC has been monitoring Musk's comments on the mega-deal, putting more pressure on the Tesla Inc CEO, who has been at odds with the SEC over his tweets about Tesla since 2018. According to court filings and media reports, the agency already has several open investigations into Musk.

The SEC stated in the letter that it contacted Musk's legal counsel the following day about the May 17 tweet, but had not received a response more than two weeks later. If Musk does not respond, the SEC may decide to make all correspondence, including the letter, public.

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