Musk plans to settle with the SEC over disclosure issues regarding SpaceX shareholdings, paving the way for SpaceX's IPO.

According to a court filing with the U.S. Securities and Exchange Commission (SEC), Elon Musk is in settlement talks with the SEC regarding his failure to disclose his purchase of Twitter (now renamed SpaceX) stock before making a takeover offer in April 2022. The report states that SpaceX's bankers hope to settle the matter before potentially launching the largest IPO in history. Regulations stipulate that investors who purchase 5% or more of a publicly traded company's shares must disclose their ownership within 10 days of the purchase. However, Musk did not disclose his ownership until 21 days after reaching that threshold. He also filed a "13G" form, intended for passive investors, instead of the "13D" form, designed for activist investors, including those intending to make a takeover offer. Musk's lawyers told the court earlier this month that, at least to some extent, these settlement talks were conducted without the involvement of the SEC enforcement lawyers handling the case. (AXIOS)