Elon Musk is facing potential sanctions from the U.S. Securities and Exchange Commission (SEC) after failing to appear in court for a scheduled testimony related to his $44 billion acquisition of Twitter, now rebranded as X. Musk missed the September 10 court-ordered appearance in Los Angeles, notifying the SEC just three hours before the testimony. Instead, Musk oversaw the launch of SpaceX’s Polaris Dawn mission in Florida.
The SEC is investigating whether Musk followed disclosure laws when buying Twitter stock before his takeover and whether his public statements misled investors. According to the SEC, Musk delayed reporting his Twitter stock purchases by at least 10 days, potentially violating securities laws.
In response to Musk’s absence, the SEC filed for sanctions, accusing him of “gamesmanship and delay tactics.” The agency is seeking a court order to compel Musk to testify and is pushing for “meaningful conditional relief” if he fails to appear in October. Additionally, the SEC plans to recover travel costs, citing the thousands of dollars spent to fly attorneys to the canceled hearing.
Musk’s attorney, Alex Spiro, defended the no-show, claiming it was due to an “emergency” beyond Musk’s control. However, the SEC emphasizes accountability, as this is not Musk’s first run-in with the agency. In 2018, he was fined $40 million and forced to step down as Tesla’s chairman for tweets that the SEC found manipulated the market. Now, the agency again calls for consequences if Musk doesn’t cooperate.
With a new court date set for October, the SEC’s probe seeks clarity on Musk’s actions leading up to the high-profile Twitter takeover.
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