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business Tuesday 5 april 2022
Suddenly, Twitter’s biggest stakeholder is Tesla’s Elon Musk

By MICHELLE CHAPMAN stock price with his posts.
and TOM KRISHER Musk’s lawyer is now asking
AP Business Writers a U.S. District Court judge
Tesla CEO Elon Musk ac- in Manhattan to throw out
quired a 9% stake in Twit- the settlement, contend-
ter to become its largest ing that the SEC is harassing
shareholder at a time when him and infringing on his
he is questioning the social First Amendment rights.
media platform’s dedica- The SEC responded in a
tion to free speech and the court motion, saying it has
First Amendment. legal authority to subpoe-
The ultimate aim of Musk’s na Tesla and Musk about
73.5 million share purchase, his tweets, and that Musk’s
worth about $3 billion, is not move to throw out the set-
known. Yet in late March tlement is not valid.
Musk, who has 80 million The SEC also disclosed that
Twitter followers and is very it is investigating Musk’s
active on the site, ques- Nov. 6, 2021 tweets that
tioned free speech on asked followers whether he
Twitter and whether the should sell 10% of his Tesla
platform is undermining de- stake. The commission con-
mocracy. firmed that it issued admin-
It’s unclear just when Musk istrative subpoenas while
bought the stake. A U.S. Tesla CEO Elon Musk attends the opening of the Tesla factory Berlin Brandenburg in Gruenheide, investigating whether Musk
Securities and Exchange Germany, Tuesday, March 22, 2022. Associated Press and Tesla are complying
Commission filing made with disclosure controls in
public on Monday says target because the value mission, shares of Twitter First Amendment rights. the 2018 agreement.
the event triggering the fil- of its shares have been fall- are up nearly 50% meaning In October of 2018, Musk Musk ended up selling
ing happened March 14. ing since early last year. that Musk’s investment has and Tesla agreed to pay more than 15 million shares
His stake meets the criteria Jack Dorsey stepped down paid handsomely, so far. $40 million in civil fines and worth roughly $16.4 billion.
for being a long-term “pas- as CEO in November. Twitter did not immediately for Musk to have his tweets With some sales in late De-
sive” investor, one looking Musk’s stake in Twitter more respond to a request for approved by a corporate cember, Musk is close to
to minimize buying and sell- than four times the size of comment. lawyer after he tweeted selling 10%.
ing of the shares. Dorsey’s, who co-founded Musk told his millions of fol- about having the money to Musk’s tweets about Twit-
Yet Musk has also raised the the company and was the lowers on Twitter that he take Tesla private at $420 ter and his stock buy came
possibility, publicly before largest individual share- was “ giving serious thought per share. after Donald Trump was
his massive and loyal Twit- holder until Musk arrived. “ to creating his own social The funding was far from banned from Twitter and
ter following, that he could “Musk’s actual investment media platform, and has secured and the elec- other top social media
create a rival social media is a very small percentage clashed repeatedly with tric vehicle company re- platforms following the Jan.
network. of his wealth, and an all-out financial regulators about mains public, but Tesla’s 6 Capitol riot last year that
Industry analysts are skepti- buyout should not be ruled his use of Twitter. stock price jumped. The critics accused him of incit-
cal about whether the mer- out,” wrote Zino, who cov- Musk is locked into a bit- settlement specified gov- ing. The ban has raised dif-
curial CEO will remain on ers Twitter and social me- ter dispute with the SEC ernance changes, includ- ficult questions about free
the sidelines for long. dia. over his ability to post on ing Musk’s ouster as board speech in a social media
In a note to investors, CFRA Twitter’s stock surged more Twitter. His lawyer has con- chairman, as well as pre- industry dominated by a
Analyst Angelo Zino wrote than 28% Monday. Since tended in court motions approval of his tweets. The few tech giants — an issue
that although Musk’s intent March 14, the date listed that the U.S. Securities and SEC brought a securities that Trump and conserva-
is unclear, Twitter could be on filing with the U.S. Secu- Exchange Commission is in- fraud charge, alleging that tive media have seized
viewed as an acquisition rities and Exchange Com- fringing on the Tesla CEO’s Musk was manipulating the upon.q

Stock tied to Trump social firm drops on

report of turmoil

Associated Press ogy officer — had left the gain access. The stock fell
NEW YORK (AP) — Stock in a company, citing two anon- to $56.50, down more than
company planning to buy ymous sources. a third over the past month.
Donald Trump’s new social That report followed a filing The Truth Social app
media business plunged by the company last week topped Apple’s App Store
Monday on a news report stating that its accountants free rankings on the day it
that two key staff members needed more time to re- was made available to a
left and a regulatory filing view financial figures be- limited set of subscribers in
that it will miss a key dead- fore filing its annual report. February. Since then, it has In this July 24, 2021, file photo former President Donald Trump
line to file its annual finan- Many public companies tumbled down the charts smiles as he pauses while speaking to supporters at a Turning
cial statements. request filing extensions, and is no longer in the top Point Action gathering in Phoenix. Associated Press
Digital World Acquisition but the news added to in- 200.
Corp. dropped more than vestor jitters fueled by the Digital World is planning to tors to sign off on its deal to line up to fund the business.
10% in midday trading on botched February launch buy Trump’s new social me- merge with Trump Media Regulators are investigat-
a Reuters report that two of Trump’s Truth Social app, dia company, Trump Me- to access the more than ing Digital World following
key executives — one the which was marred by out- dia and Technology Group. $1 billion that the former reports it may have broken
company’s chief technol- ages and long wait lists to Digital World needs regula- U.S. president had helped security rules last year.q