In October, a US regulator was sued to compel Musk to testify as part of an investigation into his $44 billion acquisition of what is now known as X
Elon Musk has been instructed to testify once more as part of a US regulatory investigation into his acquisition of the social media platform Twitter in 2022, later rebranded as X.
A ruling from a California federal court, issued on Saturday, requires the Tesla and SpaceX CEO to reach an agreement with the Securities Exchange Commission (SEC) within a week regarding the date and location of the interview. This directive follows Musk’s refusal to participate in a previous interview in September.
In the court order, US Magistrate Judge Laurel Beeler stated that while the parties had initially agreed on a date, Musk ultimately did not appear and is resisting the subpoena. Musk argues that the SEC’s investigation is unfounded, harassing, and seeks irrelevant information.
In October, the SEC sued Musk in an effort to force his testimony as part of an investigation into his $44 billion acquisition of what is now known as X. The commission is also seeking his testimony regarding compliance with regulations when completing required paperwork concerning Twitter stock purchases, as well as the accuracy of his statements regarding the platform’s acquisition.
According to the court order, Musk’s legal team had stated that he would not appear due to concerns about regulators leaking information to the media. Additionally, Musk’s team argued that the investigation was unfounded, and they expressed concern about the government’s actions, describing the document requests and the demand for testimony as troubling, particularly given that the investigation stemmed from a minor clerical error.
Beeler, in mandating an interview, dismissed that argument and affirmed that regulators had the authority to issue the subpoena for pertinent information. If the SEC and Musk fail to reach an agreement on a date and time for the interview, Beeler stated that she would hear arguments from both sides and make a decision on their behalf.
This legal action stems from a well-known 2018 tweet in which Musk claimed “funding secured” while attempting to take Tesla private.
Regulators alleged that this violated securities laws, which forbid publicly traded companies from announcing intentions to buy or sell securities if executives do not plan to complete the transaction, lack the means to do so, or are attempting to manipulate stock prices.
In a settlement, Musk agreed that a Tesla attorney would review his tweets regarding the electric vehicle maker. However, regulators filed another lawsuit against him a year later, alleging that he had violated the agreement. Musk then petitioned the US Supreme Court to review the agreement, arguing that it infringed upon his right to free speech.
In 2022, regulators requested information from Musk regarding the delayed disclosure of his Twitter stake, which he reported a week late. He testified twice that year, according to the SEC. Musk contends that a third interview would amount to government “harassment.”
This dispute is not Musk’s sole encounter with the government. In November, he failed in his attempt to prevent the Federal Trade Commission (FTC) from continuing its oversight of X’s management of private user data.
Musk characterized the agency’s actions as “a shameful case of weaponization of a government agency for political purposes and suppression of the truth!”
