Elon Musk Under Investigation by SEC Over Twitter Takeover

The U.S. Securities and Exchange Commission (SEC) has launched an investigation into Elon Musk, the world’s richest man, regarding his $44 billion takeover of social media giant Twitter, according to a court filing on Thursday. The SEC is seeking to compel Musk to testify in relation to allegations of potential violations of federal securities laws during the acquisition and subsequent statements made by Musk.

The investigation marks another chapter in the ongoing feud between Musk and the SEC, which began with Musk’s 2018 tweet about taking Tesla private. The SEC has since opened multiple probes into Musk’s actions. However, Musk’s attorney, Alex Spiro, argues that the SEC has already taken Musk’s testimony multiple times in this “misguided investigation.”

Musk’s acquisition of Twitter, which he renamed X, initially started with a large minority stake in April 2022. However, he later announced plans to purchase the company outright for $44 billion. Despite attempting to back out of the deal, Musk completed the acquisition in late October 2022 after facing legal pressure.

The SEC’s court filing states that Musk had agreed to appear for testimony on September 15 but raised objections shortly before the scheduled date, claiming harassment and requesting additional time to review relevant material. The SEC has now sought a court order to compel Musk’s testimony.

This latest legal development adds to Musk’s ongoing legal challenges. The Justice Department is reportedly investigating Tesla over self-driving claims, while federal prosecutors in New York are looking into Musk’s corporate perks and claims related to vehicle driving range.

While Musk’s refusal to appear for testimony is considered extraordinary, legal experts believe it is crucial for senior executives to cooperate with regulatory agencies. Howard Fischer, a former SEC official and partner at Moses & Singer law firm, noted that he has never heard of a senior executive failing to show up for testimony.

As the investigation unfolds, it remains to be seen how the SEC’s probe into Musk’s Twitter takeover will progress and whether it will have any significant impact on his business ventures.