US SEC Plans to Investigate Twitter and Seek Sanctions Against Elon Musk

 The U.S. Securities and Exchange Commission (SEC) announced plans on Friday to pursue sanctions against Elon Musk after he failed to appear for a court-ordered testimony. This testimony is a key part of the SEC's investigation into Musk’s $44 billion acquisition of Twitter.

SEC Accusations and Legal Action

In a filing submitted to the federal court in San Francisco, the SEC indicated it would seek an order requiring Musk to explain why he should not be held in civil contempt. The issue arose when Musk informed the SEC just three hours before his scheduled September 10 testimony that he would not be attending, which the SEC claims violated a previous court order from May 31 compelling his participation.

US SEC Plans to Investigate Twitter and Seek Sanctions Against Elon Musk

Musk, the CEO of Tesla and founder of SpaceX, was overseeing SpaceX’s Polaris Dawn mission launch at Cape Canaveral, Florida, on the same day. While Musk cited this commitment as the reason for his absence, the SEC countered that he, as SpaceX’s Chief Technical Officer, would have been well aware of the launch in advance. They accuse Musk of employing deliberate delay tactics to sidestep his legal obligations.

Allegations of “Gamesmanship”

SEC attorney Robin Andrews sharply criticized Musk’s behavior, labeling his excuse as "gamesmanship" and calling on the court to take decisive action. "The court must make clear that Musk's gamesmanship and delay tactics must cease," Andrews stated, underscoring the need for a firm judicial response to prevent further evasions.

Musk's Defense and Emergency Claims

In response, Musk's lawyer, Alex Spiro, dismissed the SEC’s call for sanctions as excessive and unnecessary. He argued that Musk’s absence at the SpaceX launch could have endangered the astronauts' lives if he had chosen not to attend. Spiro also emphasized that Musk’s testimony had already been rescheduled for October 3, adding that the September 10 situation was an “emergency” outside of Musk’s control. Spiro assured the court that there was no reason to believe such an emergency would occur again.

SEC’s Broader Investigation into Twitter Deal

This court dispute is part of the SEC's broader investigation into whether Musk violated securities laws during his early 2022 acquisition of Twitter stock. The SEC is particularly focused on whether Musk improperly delayed disclosing his purchase of Twitter shares. Under U.S. law, investors must report when their ownership of a public company exceeds 5%. Musk, however, waited over 10 days before announcing his 9.2% stake in Twitter, sparking criticism from shareholders and scrutiny from regulators.

Musk’s History with the SEC

Musk's relationship with the SEC has been fraught with tension for years. In 2018, the SEC sued Musk over a tweet in which he claimed to have "funding secured" to take Tesla private. Musk settled the lawsuit by paying a $20 million fine, agreeing to have certain tweets vetted by Tesla’s legal team, and stepping down as chairman of the company. Despite this settlement, Musk has continued to clash with the SEC, accusing the agency of "harassing" him with subpoenas.

Potential Consequences

The SEC has expressed concerns in its recent court filings that nothing prevents Musk from missing his upcoming October 3 testimony, despite the rescheduled date. While an SEC spokesperson declined to comment on the ongoing case, the regulator made it clear that they are closely monitoring Musk’s compliance with court orders. 

As the investigation progresses, Musk’s compliance—or lack thereof—could have serious implications for both his personal legal standing and the SEC’s ongoing probe into his acquisition of Twitter.

This structured and narrative-driven approach highlights the key facts while offering a clear, compelling look into the escalating tension between Musk and the SEC, blending legal drama with the high-stakes world of business and technology.