Elon Musk Risks New SEC Fight on Disclosure After Speedy Twitter Rise
- Tesla CEO signaled he’d be passive investor, then joined board
- SEC’s Gensler has pushed for more transparency from activists
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Elon Musk’s swift ascent from Twitter Inc. shareholder to board member threatens even harsher scrutiny from the Securities and Exchange Commission at a time when it’s demanding more transparency from big investors and ratcheting up fines for breaking rules.
Musk, a frequent tweeter of ideas for revamping the social-media platform, risked SEC scrutiny this week by disclosing his massive stake days later than regulations allow and because he revealed it in a filing typically reserved for passive investments. Then Twitter made him a director and he signaled in a new document that he does plan to advocate for changes as the biggest shareholder.