BREAKING: Elon Musk is now being INVESTIGATED by the Joe Biden administration
The US government has started an inquiry into Elon Musk, the CEO of SpaceX and Tesla, for his $44 billion acquisition.
Key Highlights
- According to the Wall Street Journal, the Securities and Exchange Commission (SEC) is investigating Musk's recent $44 billion purchase of Twitter.
- The SEC is particularly focused on a public form that investors must complete before purchasing more than 5% of a company.
- Despite Musk's late disclosure letter, reports claim that the SpaceX and Tesla CEO will be able to complete the purchase of Twitter since the board of directors unanimously supported Musk's bid, leaving the SEC with limited authority.
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The Wall Street Journal recently reported that the US government is investigating Elon Musk.
According to the Wall Street Journal, the Securities and Exchange Commission (SEC) is investigating Musk's recent $44 billion purchase of Twitter. The SEC is particularly focused on a public form that investors must complete before purchasing more than 5% of a company. The public form serves as a warning to current shareholders and firms that a powerful investor may be interested in acquiring control of the company.
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According to the journal, Musk's 5 percent disclosure letter arrived ten days later than it should have, saving him $140 million in share prices that could have been higher if the public had known that Musk already held 5% of the company. Despite Musk's late disclosure letter, reports claim that the SpaceX and Tesla CEO will be able to complete the purchase of Twitter since the board of directors unanimously supported Musk's bid, leaving the SEC with limited authority.
Furthermore, the Federal Trade Commission (FTC) is probing Musk's purchase, and FTC authorities are presently reviewing his purchase.
Musk's presentation deck, which includes financial projections for Twitter under his management, was recently leaked online, disclosing much information regarding Musk's financial expectations for Twitter. By 2028, the SpaceX CEO hopes to quadruple Twitter's yearly revenue to $26.4 billion. For example, Musk intends to increase Twitter's entire user base from 217 million to 600 million by 2025. There's also a top-secret project called "X," which is anticipated to bring in at least 104 million paying Twitter customers.
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