Elon Musk, the billionaire CEO of Tesla, finds himself once again in the crosshairs of the SEC over his Twitter stock purchases before he eventually bought the entire company. The SEC is attempting to force Musk to provide testimony to their investigation, claiming that he has been dodging their attempts to get his side of the story.
TechCrunch reports that Elon Musk is again under SEC scrutiny. The federal agency, tasked with maintaining fair, orderly, and efficient markets, has set its sights on Musk for allegedly violating securities laws through his acquisition of Twitter stock prior to purchasing the entire social media platform, which he has since rebranded to X. The SEC has asked the U.S. District Court for the Northern District of California, San Francisco Division to compel Musk to testify after he failed to appear at a meeting in September.
Tesla CEO Elon Musk (Photo by Justin Sullivan/Getty Images)
The SEC’s probe, which commenced in April 2022, has been carefully examining Musk’s statements and disclosures about the stock transactions, seeking to unearth whether the billionaire committed insider trading, market manipulation, or violations of fair market disclosure norms. The investigation, while ongoing and nonpublic, has seen Musk submitting hundreds of documents and testifying twice in July 2022, according to the agency’s filing.
Breitbart News reported on the investigation last year:
The New York Post reports that the SEC has launched an investigation into Tesla CEO Elon Musk’s disclosure of his stake in Twitter in early April. In the letter, the SEC asked Musk why it appears that he did not file the required paperwork within 10 days of the acquisition.
The SEC demanded more information from Musk on his public statements regarding whether Twitter adheres to free speech principles. The commission also asked Musk to explain his decision to file a 13G disclosure form which is usually filed by investors that plan to hold their shares passively. The SEC asked Musk why he didn’t file a 13D form which is for activist investors aiming to influence the management and policies of the company they have invested in — something which Musk had clear plans to do.
Musk, despite agreeing to an interview with the SEC last month in San Francisco, raised objections just two days before the scheduled September 15 meeting. The billionaire claimed that San Francisco jurors harbor a dislike for him based on a questionnaire sent to 200 prospective jurors, which returned with a majority holding negative opinions of the entrepreneur.
In an attempt to accommodate Musk, the SEC proposed relocating the interview to Fort Worth, Texas, where Musk resides. However, the agency asserts that he refused to meet altogether, further complicating the investigation and potentially straining the relationship between the regulatory body and one of the most high-profile tech titans in the world.
This is not Musk’s first tangle with the SEC. The Tesla CEO has previously been ordered to have a lawyer review his Tesla-related tweets after the infamous 2018 incident where Musk tweeted that he had “funding secured” to take Tesla private for $420 per share, asserting that investor support for the deal was confirmed. The subsequent fluctuation in Tesla’s share price prompted an SEC investigation into whether Musk had committed securities fraud. The matter finally closed this year when the court system agreed to a payout for Tesla shareholders harmed through Musk’s actions.
Moreover, the SEC is concurrently investigating Musk and Tesla over their claims regarding Tesla vehicles’ “full self-driving” capabilities, as well as the utilization of Tesla’s funds to construct Musk a “glass house.”
Musk commented on the SEC investigations, stating: “A comprehensive overhaul of these agencies is sorely needed, along with a commission to take punitive action against those individuals who have abused their regulatory power for personal and political gain.”
He added: “Can’t wait for this to happen… I estimate the probability at 100%.”
JUST IN: Elon Musk calls for the overhaul of agencies like the SEC & calls for the punishment of people at these agencies who abuse their power for political reasons.
— Collin Rugg (@CollinRugg) October 5, 2023
Good, let's do this for all 3-letter agencies.
The comment from Musk came on X in response to the news that the… pic.twitter.com/XwazVSVltM
Read more at TechCrunch here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
