Suddenly, Tesla's Elon Musk is Twitter's biggest stakeholder
San Francisco(AP): Elon Musk has taken a 9% stake in Twitter to become its largest shareholder after raising questions about the social media platform's dedication to free speech.
The ultimate aim of Musk's 73.5 million share purchase worth 3 billion based on the closing price Friday, is not clear. Yet in late March Musk, who has 80 million Twitter followers and is very active on the site, questioned free speech on Twitter and whether the platform is undermining democracy.
The regulatory filing Monday says Musk bought the shares on March 14, describing him as a long-term investor looking to minimize his buying and selling of the shares. That means that Musk acquired the shares before beginning his public discourse on the First Amendment and Twitter.
Yet Musk has also raised the possibility, publicly before his massive and loyal Twitter following, of starting a rival social media network.
Industry analysts are skeptical about whether the mercurial CEO will remain on the sidelines for long.
We would expect this passive stake as just the start of broader conversations with the Twitter board/management that could ultimately lead to an active stake and a potential more aggressive ownership role of Twitter," Dan Ives of Wedbush Securities said in a client note early Monday.
Twitter's stock surged more than 22% at the opening bell Monday. The company did not immediately respond to a request for comment.
Musk told his more than 80 million followers on Twitter that he was giving serious thought " to creating his own social media platform and has clashed repeatedly with financial regulators about his use of Twitter.
His Twitter stock purchase comes as Musk is locked into a bitter dispute with U.S. securities regulators over his ability to post on Twitter. Musk's lawyer has contended in court motions that the U.S. Securities and Exchange Commission is infringing on the Tesla CEO's First Amendment rights.
In October of 2018, Musk and Tesla agreed to pay 40 million in civil fines and for Musk to have his tweets approved by a corporate lawyer after he tweeted about having the money to take Tesla private at 420 per share.
The funding was far from secured and the electric vehicle company remains public, but Tesla's stock price jumped. The settlement specified governance changes, including Musk's ouster as board chairman, as well as pre-approval of his tweets. The SEC brought a securities fraud charge, alleging that Musk was manipulating the stock price with his posts.
Musk's lawyer is now asking a U.S. District Court judge in Manhattan to throw out the settlement, contending that the SEC is harassing him and infringing on his First Amendment rights.
Early in March, Musk asked Judge Alison Nathan to nullify an SEC subpoena and throw out the settlement agreement. His lawyer, Alex Spiro, said the SEC has used the court agreement to trample on Mr. Musk's First Amendment rights and to impose prior restraints on his speech.
The SEC responded in a court motion, saying it has legal authority to subpoena Tesla and Musk about his tweets, and that Musk's move to throw out the settlement is not valid.
The SEC disclosed that it is investigating Musk's Nov. 6, 2021 tweets that asked followers whether he should sell 10% of his Tesla stake. The commission confirmed that it issued administrative subpoenas while investigating whether Musk and Tesla are complying with disclosure controls in the 2018 agreement.
The commission also is investigating whether Tesla described accurately in public filings with the agency whether it complied with the controls.
The commission maintains that the subpoenas were lawful, and that Musk isn't following proper legal procedure to challenge them. SEC attorney Melissa Armstrong called Musk's challenge frivolous, and pointed out that Musk and Tesla agreed to have his tweets pre-approved by other company officials.
Courts have long recognized that congress has vested the SEC with broad authority to conduct investigations into possible violations of federal securities laws and to demand production of evidence relevant to such investigations,' Armstrong wrote.
The subpoenas, issued under seal, come from a formal order by the commission authorizing the investigation. They seek all written communications concerning the Nov. 6 tweets and whether they were shown to Tesla lawyers for pre-approval.
Musk attorney Spiro has asked for verbal arguments in the case.
Musk's revelation about his stake in Twitter shares comes two days after Tesla Inc. posted first-quarter delivery numbers. While the company delivered 310,000 vehicles in the period, the figure was slightly below expectations.
Shortly after the November tweets about the Tesla stock sale Musk began selling off shares, and he wrote on Twitter that the sale would go to pay tax obligations on stock options. Analysts estimate his tax obligation at 10 billion to 15 billion. But some of the money could have been used to buy the Twitter stake.
So far he has sold more than 15 million shares worth roughly 16.4 billion. With some sales in late December, Musk is close to selling 10%.
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India's neighbours wanted to break up Assam but Modi govt shattered their dreams: Fadnavis
Dibrugarh/Jorhat (PTI): Maharashtra Chief Minister Devendra Fadnavis on Tuesday claimed India's neighbours wanted to "break up" Assam by taking advantage of the unrest here earlier, but their "dreams were shattered" as the Narendra Modi government brought peace to the region.
Militancy has come to an end, and 92 per cent of the assurances made in the peace agreements with various groups have already been implemented, he told a poll rally.
Fadnavis maintained that the BJP-led government in Assam has not only ensured the state's development but also protected its identity.
He accused the Congress of having neglected the state and the northeastern region by adopting a "step-motherly attitude" towards them, while Modi has put the region at the centre of development.
Addressing a rally in support of BJP's Dibrugarh candidate Prasanta Phukan, Fadnavis said, "Due to the unrest in the state earlier, neighbouring countries thought they would break Assam someday. But their dreams were shattered by Modi ji, and Assam is progressing fast today."
Crediting the BJP government for bringing the militant groups to the mainstream, the Maharashtra chief minister said not only were peace accords signed with them, but 92 per cent of the assurances made have been implemented.
"Work is on for implementing the remaining eight per cent of promises also," he added.
Highlighting the various welfare measures of the state government, Fadnavis said special emphasis was being given on women's empowerment in line with the Centre's thrust on it.
"Women have benefited the most under Modiji's government. It will be 'Mahila raaj' from 2029 when 33 per cent reservation is implemented in Parliament and state Assemblies," he added.
Speaking at another rally in support of the BJP's Jorhat candidate Hitendra Nath Goswami earlier, the Maharashtra chief minister alleged that infiltration was at its peak in Assam under Congress governments.
"People had to launch a movement against it, and scores were martyred. But the influx did not stop, and the state was burning. It was staring at a full demographic change."
"But the situation changed when Modi came to power. Infiltration has been stopped, and almost all militant groups in the state are returning to the mainstream," he claimed.
Fadnavis claimed that the state's demography would have changed and Assam's history would have been rewritten under the Congress rule.
"But the Modi government works not just for development, but also protects the state's identity, culture, history, and tradition," he said.
He told the gathering that the BJP-led government has ensured massive infrastructure development for the state.
Mentioning the Tata Group's semiconductor unit at Jagiroad, Fadnavis said, "It is a gift of Modi ji to Assam. It will place the state on the global map."
He added that countries with the ability to manufacture semiconductors will be global leaders in the future, and India has joined the elite ranks of a handful of nations.
Taking a dig at the Congress, Fadnavis alleged it had always adopted a "step-motherly attitude" towards the northeast, due to which the region did not see much development, and was embroiled in unrest.
He also criticised the opposition party for its "anti-national stance" during the West Asia crisis, claiming it was trying to create discontentment among the people by raising false doubts over the availability of LPG and fuel.
"We had also been in the opposition, but we had never acted in such a shameful manner," he said.
Taking a dig at state Congress president Gaurav Gogoi, who is also the opposition party's candidate in Jorhat, Fadnavis said, "Those in Lok Sabha should remain there. BJP will return to power, and he will have no work here."
Gogoi is also the opposition party's deputy leader in the Lok Sabha.
