Mr. Musk has filed a new Securities and Exchange Commission document that takes almost all restraints off him as an investor, according to The Verge.
The new form removes impediments to Mr. Musk purchasing a much larger share of the company. It also lays out a number of ways he can make his voice heard going forward, as The Verge reports.
Musk’s initial form classified him as a “passive” investor, now he’s an “active” investor.
He isn’t interested in buying more stock right now, as noted in the new filing. But, he reserves the right in the future.
THIS PART IS VERY INTERESTING
The new document says Musk “may engage in discussions with the Board and/or members of the Issuer’s management team concerning, including, without limitation, potential business combinations and strategic alternatives, the business, operations, capital structure, governance, management, strategy of the Issuer and other matters concerning the Issuer.”
Musk now “may express his views to the Board and/or members of the Issuer’s management team and/or the public through social media or other channels with respect to the Issuer’s business, products and service offerings,” according to his updated filing.”
That’s interesting because CEO Parag Agrawal’s statement about Musk declining the Board seat appeared arrogant to us.
“We have and will always value input from our shareholders, whether they are on our Board or not,” Agrawal wrote in a statement on Twitter. “Elon is our biggest shareholder and we will remain open to his input.”
Agrawal added that “there will be distractions ahead but our goals and priorities remain unchanged. The decisions we make and how we execute is in our hands, no one else’s. Let’s tune out the noise, and stay focused on our work, and what we’re building.”
Musk also deleted two tweets, one of which was critical of the company and it appeared that he might have been told to play nice.
It looks like he can express his views freely on social media now. And, he can show up at their meetings anyway, without sitting on the board.
If Parag thinks he is going to take on Mr. Musk, he’ll lose.
Elon has decided not to join our board. I sent a brief note to the company, sharing with you all here. pic.twitter.com/lfrXACavvk
— Parag Agrawal (@paraga) April 11, 2022