Elon Musk Ordered to Testify in SEC Probe Regarding Twitter Acquisition

Elon Musk has been directed by a judge of the Federal Court of California to appear before the U.S. Securities and Exchange Commission (SEC) in relation to the investigation into his acquisition of Twitter, now known as X, in October 2022.

The SEC is conducting an inquiry into whether Musk engaged in securities fraud when he began purchasing Twitter stock in order to accumulate a stake in the company prior to acquiring it, an acquisition that reportedly cost him around $44 billion. Judge Laurel Beeler ruled that the SEC was warranted in issuing a subpoena to Musk and has given both parties a week to mutually agree on a date and location for the testimony. If they are unable to do so, the judge will intervene and make the decision.

Musk was initially sued by the SEC in October 2023 after he declined to participate in an interview with the agency the previous month regarding the acquisition of X. His legal team has argued that the SEC’s interest in Musk has escalated to the point of harassment, which prompted his refusal to engage with the agency. This conflict between Musk and the SEC dates back to 2018 when the billionaire made a facetious Tweet about having “funding secured” to take Tesla private, resulting in a lawsuit from the SEC for causing a spike and subsequent drop in Tesla’s stock valuation and misleading investors.

In the aftermath of the lawsuit, Musk settled for $20 million and agreed to step down as the Chairman of the Board at Tesla. He expressed his gratitude for the jury’s verdict, stating, “Thank goodness, the wisdom of the people has prevailed. I am deeply appreciative of the jury’s unanimous finding of innocence in the Tesla 420 take-private case.”

Musk’s ongoing legal entanglements have once again sparked public and media interest. The outcome of the forthcoming SEC investigation and Musk’s testimony will undoubtedly be closely monitored by the public and investors alike.

For the full order from the court instructing Musk’s compliance, please refer to the following link.