The U.S. Securities and Exchange Commission (SEC) has escalated its legal battle with Elon Musk, announcing on Friday that it intends to pursue sanctions against the tech mogul for failing to appear for court-ordered testimony related to his $44 billion acquisition of Twitter. The SEC claims Musk is engaging in deliberate delay tactics and is seeking a motion to hold him in civil contempt.
In a filing with the San Francisco federal court, the SEC said Musk, the world’s richest person and CEO of both Tesla and SpaceX, had notified them just three hours before his scheduled September 10 testimony that he would not attend, citing his presence at Cape Canaveral to oversee a SpaceX launch. The SEC, however, argued that Musk, as SpaceX’s chief technical officer, had prior knowledge of the launch and accused him of using the event as an excuse to avoid the deposition.
“Musk’s excuse itself smacks of gamesmanship,” said SEC attorney Robin Andrews, calling for the court to intervene and ensure that Musk’s alleged tactics to evade the investigation are halted. According to the SEC, Musk violated a court order from May 31, which had compelled him to testify as part of the regulator’s probe into whether he broke securities laws during his 2022 acquisition of Twitter.
Musk’s attorney, Alex Spiro, dismissed the SEC’s move for sanctions as “drastic” and “unnecessary,” stating that Musk’s absence at the September 10 deposition was due to an “emergency” related to the SpaceX mission. Spiro argued that Musk’s presence at the launch was critical for ensuring the safety of astronauts and emphasized that the testimony has already been rescheduled for October 3.
The SEC is investigating whether Musk breached securities regulations in early 2022 when he began amassing Twitter shares. Under U.S. law, investors must disclose their stake when they acquire 5% or more of a public company. Musk, however, allegedly delayed his disclosure by at least 10 days, ultimately revealing a 9.2% stake in Twitter, which led to his full buyout offer shortly after.
Musk later admitted that he misunderstood the SEC’s disclosure rules, claiming the delay was an “honest mistake.” Nonetheless, the regulator remains concerned that Musk’s actions may have violated securities laws, and it sued him last October after he missed a previously scheduled interview at the SEC’s San Francisco office.
Musk has long had a contentious relationship with the SEC, dating back to the infamous 2018 case where he tweeted about taking Tesla private at $420 per share. That incident led to a lawsuit, which Musk settled by paying a $20 million fine and agreeing to Tesla lawyer oversight on some of his social media posts. However, he has repeatedly accused the SEC of attempting to “harass” him with subpoenas and further legal scrutiny.
The SEC is pressing the court to enforce strict sanctions to prevent Musk from further delays in the ongoing investigation. The regulator has warned that despite the rescheduled testimony for October 3, Musk may still attempt to dodge the investigation, calling for more robust legal measures to compel his compliance. As the battle continues, Musk remains under scrutiny not just for his actions related to Twitter but for the growing influence he wields across tech, automotive, and aerospace industries.
With national security concerns over his Twitter acquisition and his refusal to back down from legal challenges, this latest chapter between Musk and the SEC could have major implications for his businesses—and his reputation as a visionary entrepreneur.
