SEC Seeks to Compel Elon Musk to Testify Over Twitter Stock Purchases
The U.S. Securities and Exchange Commission (SEC) is seeking to compel Elon Musk, the owner of X, to provide testimony regarding his Twitter stock transactions prior to acquiring the social media platform. This move comes after Musk failed to testify last month, and it adds to the ongoing conflict between him and the SEC.
Investigation into Twitter Stock Purchase
The investigation, which began in April 2022, aims to determine whether Musk violated federal securities laws when he purchased shares in Twitter. It also scrutinizes his statements and filings related to the acquisition, questioning whether he properly disclosed his actions.
Musk’s Stake in Twitter
Prior to finalizing the acquisition of Twitter, Musk acquired a 9.2% stake in the company in March of the previous year. He disclosed this stake to the SEC in April but faced inquiries from the regulator about the disclosure.
SEC Subpoenas Musk
The SEC revealed that it subpoenaed Musk in May 2023. Initially, he agreed to testify at the SEC’s San Francisco office on September 15. However, just two days before the scheduled interview, he raised objections and refused to appear.
SEC Requests Thousands of Documents
Throughout the investigation, the SEC has requested numerous documents from Musk and other parties involved. According to a filing in San Francisco federal court on October 5, Musk has already testified twice in July 2022.
Musk’s Past Conflicts with Regulatory Agencies
This is not Musk’s first encounter with regulatory agencies. In 2018, he faced an investigation into his claims about Tesla’s self-driving cars. He has also had clashes with the U.S. Justice Department and the Biden administration.
Musk’s Response to the SEC
In a comment on X, Musk expressed his belief that regulatory agencies require a comprehensive overhaul. He suggested the establishment of a commission to take action against individuals who abuse their regulatory power for personal and political gain.
Hot Take: SEC’s Ongoing Battle with Elon Musk
The SEC’s attempt to compel Elon Musk to testify in its investigation of his Twitter stock purchases is another chapter in their ongoing conflict. Musk’s refusal to appear and his accusations of harassment suggest a deepening divide between him and the regulatory agency. This latest development highlights the challenges faced by both parties as they navigate legal proceedings and raises questions about the future of their relationship.
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