The US government has opened an investigation into SpaceX and Tesla CEO Elon Musk.
The Wall Street Journal report says that the Security and Exchange Commission (SEC) is looking into Musk’s recent $44 billion acquisition of Twitter. According to the report, the SEC is focusing on a public form that investors must file before purchasing more than 5% of a firm.
The public form almost acts as a notification to current shareholders and companies that an influential investor may be trying to take control of the company.
The publication reports that Musk’s 5% disclosure letter was ten days later than it should have been, and as a result. This saved him $140 million because share prices might have been higher if the public knew that Musk already owned 5 percent of the company.
Even though Musk’s disclosure letter was late, reports say that the CEO of SpaceX and Tesla would still be able to buy Twitter because the board of directors unanimously accepted Musk’s offer, leaving the SEC with little power to act.
Also, the Federal Trade Commission (FTC) is looking into Musk’s acquisition, and FTC officials are now reviewing his purchase.