The Securities and Exchange Commission (SEC) is planning to seek sanctions against Elon Musk after he missed a previously scheduled testimony related to the agency’s investigation into his $44 billion acquisition of Twitter.
According to a recent court filing, the SEC is investigating whether Musk’s purchase of the platform, now rebranded as “X,” complied with federal securities laws.
Musk was initially summoned to provide testimony in connection with the case, but he failed to appear for the scheduled interview. As a result, the SEC is now looking to take further legal action, which could include sanctions, to ensure compliance. The court filing highlights the ongoing tension between Musk and the regulator, as this is not the first time the billionaire entrepreneur has faced scrutiny from the SEC.
The agency’s probe revolves around Musk’s initial stock purchases, his public statements about the acquisition, and whether these actions were properly disclosed to investors and regulatory bodies. Given the high-profile nature of Musk’s ventures and his influence on financial markets, the outcome of this investigation could have significant implications, not only for Musk himself but also for the way future high-stakes business deals are conducted and regulated.
In a court filing, the Securities and Exchange Commission expressed frustration with Elon Musk, accusing him of using “gamesmanship and delay tactics” to avoid testifying in its investigation. According to the SEC, Musk was scheduled to appear for testimony on the morning of September 10 at its Los Angeles office.
The agency claimed that three of its attorneys had flown in the day before in preparation for the interview. However, just hours before the scheduled testimony, one of Elon Musk’s lawyers notified the SEC that Musk would not attend due to an urgent trip to Cape Canaveral for SpaceX’s latest launch, Polaris Dawn.
The SEC argues that Elon Musk’s last-minute cancellation wasted time and resources. As a result, the agency is pushing for Elon Musk to be held in contempt for failing to inform them sooner about his inability to attend. They are also seeking to recover the travel costs incurred and are asking the court for any other relief it deems appropriate.
The SEC’s ongoing investigation is part of a broader probe into Musk’s $44 billion acquisition of Twitter, focusing on whether he properly disclosed his stock purchases and public statements about the deal. This latest development adds to the growing tension between Elon Musk and the regulatory agency, as it continues to scrutinize his business dealings.
One of the most infamous moments in Elon Musk’s long-standing clash with the SEC occurred in 2018, when the Tesla CEO tweeted about a plan to take the electric car company private at $420 per share. The tweet caused a media frenzy, leading many to believe a deal was imminent. However, the SEC later alleged that Musk’s claims were misleading and lacked the necessary financial backing.
The fallout resulted in a settlement where Musk agreed to pay a $20 million fine and step down as Tesla’s chairman, though he remained the company’s CEO. Despite the costly consequences, Musk remained defiant.
Shortly after the settlement, he appeared on the news show “60 Minutes” and famously stated that he does “not respect the SEC,” underscoring the tension that continues to exist between him and the regulator. This ongoing conflict has only deepened over the years, as the SEC continues to scrutinize his high-profile business dealings.
