- Federal judge ordered Elon Musk to testify in SEC investigation of his Twitter acquisition in 2022 amid probe into potential securities fraud.
- SEC examining if securities laws were violated when Musk began amassing stake in Twitter ahead of $44 billion leveraged buyout.
- Musk’s testimony could shed light on strategy and mindset in accumulating Twitter stake and expose any improper conduct, continuing his combative relationship with regulators.
A federal judge has ordered Tesla and SpaceX CEO Elon Musk to testify in an investigation by the U.S. Securities and Exchange Commission (SEC) regarding his acquisition of Twitter in 2022. The ruling comes amid a probe into whether Musk or anyone else committed securities fraud as he began amassing a stake in Twitter ahead of his $44 billion leveraged buyout of the social media firm.
SEC Investigation and Subpoena
The SEC is examining if securities laws were violated during the lead-up to Musk’s Twitter buyout last year. Although Musk’s legal team argued the subpoena amounted to harassment, Judge Laurel Beeler ruled the SEC was within its authority and the subpoena “seeks relevant information” about the deal. Musk and the SEC now have one week to agree on a time and place for his testimony.
Musk’s Strained Relationship with Regulators
The Twitter case marks the latest instance of Musk clashing with federal agencies. He previously sought to undo a settlement with the SEC requiring his tweets be pre-approved and is currently battling the National Labor Relations Board over illegal termination claims. Musk has repeatedly challenged regulators’ authority, at times alleging overreach and unconstitutional conduct.
Potential Implications
Musk’s testimony could shed light on his strategy and mindset in accumulating a major stake in Twitter earlier this year. If any securities violations are uncovered, Musk and others could face financial penalties. The legal battle with the SEC also continues Musk’s combative relationship with regulators as head of Tesla and SpaceX.
Conclusion
Judge Beeler’s order represents a significant development in the SEC’s investigation into Elon Musk’s $44 billion Twitter acquisition. Musk is now compelled to testify in the ongoing probe, providing regulators insider knowledge of how the deal unfolded and potentially exposing any improper conduct. The saga highlights Musk’s uneasy dynamic with federal oversight as an influential industry figure.
