Tesla Hits Peak Levels as SEC Investigates Musk’s Twitter Transactions
Unfazed by news of increased investigation by the Securities and Exchange Commission (SEC) into Elon Musk’s pre-acquisition Twitter share buying, Tesla (NASDAQ:TSLA) stock soared to new heights on Friday. The electric vehicle giant’s shares have rocketed a staggering 70% since the U.S Presidential Election on November 5th and grown by almost 135% in just six months.
The SEC is reportedly calling for monetary penalties from Musk over alleged non-disclosure of Twitter stock transactions conducted before the $44 billion merger. Alex Spiro, Musk’s legal representation, criticized the penalty demand as a “misguided scheme” in a letter dated X, also criticising the commission’s decision to revisit an isolated inquiry into Neuralink, Musk’s brain-computer interface enterprise.
Maintaining its policy of reticence on investigations, the SEC hasn’t yet replied to Spiro’s letter or confirmed the allegations. As per Spiro’s letter, Musk is legally obligated to disclose his ownership in Twitter after it exceeds 5%, a requirement he didn’t meet. Musk reportedly kept investors in the dark until his share ownership crested 9%.
Regardless of the ongoing discussion, Tesla’s impressive stock rally reflects investor confidence in the enterprise’s long-term potential, despite Musk’s persistent regulatory hurdles.
