HIGHLIGHTS
Elon Musk was questioned by the Securities and Exchange Commission (SEC) about why he didn't register his Twitter stock purchases sooner.
Elon Musk and Twitter have recently agreed to take the company private.
Musk had 10 days to reveal his new Twitter investment.
Elon Musk has been asked to explain an apparent delay in reporting his Twitter stock purchases, according to the US Securities and Exchange Commission, the latest issue about the tactics and motive of his tumultuous bid for the platform.
Musk became a big Twitter stockholder after purchasing 73.5 million shares in early April, then launched a hostile takeover effort less than two weeks later.
He went on to make a $44 billion (approximately Rs. 3,41,800 crore) contract to buy the San Francisco-based firm, but has subsequently sent mixed signals about how serious he is about carrying it out.
The Securities and Exchange Commission (SEC) wrote to Musk, asking him to explain why he didn't report his increasing investment in Twitter within the minimum 10-day period, especially if he intended to buy the firm.
In a letter dated April 4, authorities added, "Your response should address, among other things, your recent public statements on the Twitter platform on Twitter, including statements questioning whether Twitter rigorously adheres to free speech principles."
Musk and the SEC did not reply to demands for comment right away.
Tesla's CEO is a prolific Twitter user, regularly making heated and contentious statements regarding topics or other prominent figures, as well as witty or business-related remarks.
After a rumoured attempt to take Tesla private in 2018 went through, he clashed with federal securities officials, who cracked down on his social media use.
Following his August 2018 tweet saying money was "secured" to take Tesla private, Musk has invoked the right to free speech as a driving force for his efforts to overturn an agreement with the SEC that restricted his usage of the social media site.
Musk is also facing a lawsuit filed this week accusing him of artificially depressing Twitter's stock price in order to either get out of his acquisition bid or negotiate a lower price.
According to the lawsuit, Musk tweeted and made statements with the intent of casting doubt on the deal, which has roiled Twitter for weeks.
According to the complaint, "Musk proceeded to make statements, send tweets, and engage in actions meant to sow doubt about the acquisition and push Twitter's stock down dramatically."
The suit claimed that his goal was to create leverage so that he could get Twitter for a substantially lower price or back out of the agreement without facing any consequences.
