Elon Musk Summoned for SEC Testimony Over Twitter Acquisition

Photo of author
Written By Joel Gbolade

SEC Investigation into Musk’s Twitter Purchase

Elon Musk, the CEO of Tesla and SpaceX, has been ordered by a federal judge to testify as part of an investigation by the U.S. Securities and Exchange Commission (SEC) into his acquisition of Twitter in 2022.

Tesla Ceo Elon Musk Pictured Delivery Ceremony Sales Center Tesla — Stock Photo, Image
Credits: DepositPhotos

The probe seeks to determine if Musk or any associated parties engaged in securities fraud during the period Musk began purchasing Twitter stock and subsequently executed a leveraged buyout of the social media platform, which he later renamed X.

Read More: Musk Rebuffs Allegations of Starlink Sales to Russia Following Kyiv’s Accusations of Their Use in Annexed Regions

Federal Judge’s Ruling

In a ruling dated February 10, 2024, Federal Magistrate Judge Laurel Beeler mandated Musk’s compliance with the SEC’s subpoena, dismissing claims by Musk’s legal representatives that the SEC’s actions constituted harassment.

Judge Beeler asserted that the SEC was acting within its jurisdiction and that the subpoena was clear and sought pertinent information for the ongoing investigation.

The SEC and Musk are now required to agree on a date and location for his deposition within a week.

Musk’s Legal Challenges Against Regulatory Agencies

Elon Musk has a history of contesting the authority of federal regulatory bodies. Notably, he has petitioned the U.S. Supreme Court to nullify a previous settlement with the SEC, which mandated pre-approval of his tweets related to Tesla by an appointed overseer, dubbed a “Twitter sitter.”

Musk’s legal team argues that this agreement infringes upon his constitutional right to free speech.

SpaceX’s Legal Battle with the NLRB

In addition to the SEC dispute, Musk’s SpaceX has initiated legal action against the National Labor Relations Board (NLRB) following a complaint by the agency.

The complaint alleged that SpaceX unlawfully terminated employees who criticized Musk in an open letter, expressing that his public conduct was often a “source of distraction and embarrassment.”

SpaceX’s lawsuit, filed in the U.S. District Court for the Southern District of Texas in Brownsville, challenges the constitutional legitimacy of the NLRB’s structure and seeks to halt the agency’s complaint proceedings.

Also Read: A Look at Cathie Wood’s Investments and Her Big Crypto Bet

Implications of Musk’s Legal Entanglements

Elon Musk’s legal confrontations with federal agencies like the SEC and NLRB underscore the complexities of regulatory compliance and governance in the intersection of corporate leadership and public communication.

NLRB Rules That Employers Can't Stifle Speech for Severance
Credits: Business Insider

As these legal battles unfold, they may set precedents for how executives’ communications are regulated and how federal agencies’ authority is interpreted and challenged in the corporate world.

Read Next: Tesla Predicts Slower Production Growth, Stock Falls


You should read and understand this disclaimer in its entirety before joining or viewing the website or email/blog list of SmallCapStocks.com (the “Publisher”). The information (collectively the “Advertisement”) disseminated by email, text or other method by the Publisher including this publication is a paid commercial advertisement and should not be relied upon for making an investment decision or any other purpose. The Publisher is engaged in the business of marketing and advertising the securities of publicly traded companies in exchange for compensation. The track record, gains, upside, and/or losses mentioned in the Advertisement, if any, should not be considered as true or accurate or be the basis for an investment. The Publisher does not verify the accuracy or completeness of any information included in the Advertisement. While the Publisher does not charge for the SMS service, standard carrier message and data rates may apply. To unsubscribe from receiving promotional text messages to your phone sent via an autodialer, using your phone reply to the sender’s phone number with the word STOP or HELP for help.

The Advertisement is not a solicitation or recommendation to buy securities of the advertised company. An offer to buy or sell securities can be made only by a disclosure document that complies with applicable securities laws and only in the states or other jurisdictions in which the security is eligible for sale. The Advertisement is not a disclosure document. The Advertisement is only a favorable snapshot of unverified information about the advertised company. An investor considering purchasing the securities, should always do so only with the assistance of his legal, tax and investment advisors. Investors should review with his or her investment advisor, tax advisor or attorney, if and to the extent available, any information concerning a potential investment at the web sites of the U.S. Securities and Exchange Commission (the "SEC") at www.sec.gov; the Financial Industry Regulatory Authority (the "FINRA") at www.FINRA.org, and relevant State Securities Administrator website and the OTC Markets website at www.otcmarkets.com. The Publisher cautions investors to read the SEC advisory to investors concerning Internet Stock Fraud at www.sec.gov/consumer/cyberfr.htm, as well as related information published by the FINRA on how to invest carefully. Investors are responsible for verifying all information in the Advertisement. As an advertiser, we do not verify any information we publish. The Advertisement should not be considered true or complete.

The Publisher does not offer investment advice or analysis, and the Publisher further urges you to consult your own independent tax, business, financial and investment advisors concerning any investment you make in securities particularly those quoted on the OTC Markets. Investing in securities is highly speculative and carries an extremely high degree of risk. You could lose your entire investment if you invest in any company mentioned in the Advertisement. You acknowledge that we are not an investment advisory service, a broker-dealer or an investment adviser and we are not qualified to act as such. You acknowledge that you will consult with your own independent, tax, financial and/or legal advisers regarding any decisions as to any company mentioned here. We have not determined if the Advertisement is accurate, correct or truthful. The Advertisement is compiled from publicly available information, which include, but are not limited to, no cost online research, magazines, newspapers, reports filed with the SEC or information furnished by way of press releases. Because all information relied upon by us in preparing an advertisement about an issuer comes from a public source, it is not reliable, and you should not assume it is accurate or complete.

By your subscription to our profiles, the viewing of this profile and/or use of our website, you have agreed and acknowledged the terms of our full disclaimer and privacy policy which can be viewed at the following link: www.SmallCapStocks.com/Disclaimer and www.SmallCapStocks.com/Privacy-Policy

By accepting the Advertisement, you agree and acknowledge that any hyperlinks to the website of (1) a client company, (2) the party issuing or preparing the information for the company, or (3) other information contained in the Advertisement is provided only for your reference and convenience. The advertiser is not responsible for the accuracy or reliability of these external sites, nor is it responsible for the content, opinions, products or other materials on external sites or information sources. If you use, act upon or make decisions in reliance on information contained in any disseminated report/release or any hyperlink, you do so at your own risk and agree to hold us, our officers, directors, shareholders, affiliates and agents harmless. You acknowledge that you are not relying on the Publisher, and we are not liable for, any actions taken by you based on any information contained in any disseminated email or hyperlink.