After dodging the Securities and Exchange Commission for an extended period, Elon Musk has at last consented to testify in the agency’s probe concerning his 2022 acquisition of Twitter.
The SEC initiated an investigation into Musk’s purchase of Twitter, now known as X, on May 22, scrutinizing whether Musk contravened federal securities laws during his acquisition of stock in the social media company.
In May 2023, the commission subpoenaed Musk, requesting his testimony at the SEC’s San Francisco office. Musk initially agreed to appear on Sept. 15 but notified the commission two days prior that he would not attend, citing “several spurious objections.”
Following this, the SEC filed a lawsuit against Musk last October to compel his testimony. Musk has since agreed to provide up to five hours of questioning this year. Should Musk need to reschedule, he must obtain a court order or the written consent of the SEC.
The SEC stated in a press release that it seeks “Musk’s testimony to obtain information not already in the SEC’s possession that is relevant to its legitimate and lawful investigation.”
Musk disclosed his purchase of a minority stake in Twitter in April 2022, although he was tardy with the disclosure filing. Initially, Musk indicated he would be a passive stakeholder but subsequently accepted and then declined a board seat at Twitter. By the end of the month, he declared his intention to purchase Twitter for $44 billion. After attempting to back out of the deal, he finalized the acquisition in October 2022.
Musk and the SEC have had a contentious relationship for years. In 2018, the SEC sued Musk over tweets suggesting he had secured financial backing to take Tesla private, which the commission argued misled investors. Consequently, Musk was removed as Tesla’s chairman, and his posts regarding Tesla must now be vetted by a lawyer.
