A US federal court has ruled that Elon Musk, CEO of Tesla and SpaceX, must testify again in the ongoing investigation by the US Securities and Exchange Commission (SEC) into his USD 44 billion takeover of Twitter.
The SEC filed a lawsuit against Musk in October after he declined to attend an interview regarding the investigation, with Musk claiming the SEC was attempting to harass him with multiple subpoenas.
The investigation revolves around allegations of whether Musk violated federal securities laws during his acquisition of Twitter stock in 2022, later rebranded as X. The SEC is particularly interested in scrutinising Musk’s statements and SEC filings pertaining to the deal.
US Magistrate Judge Laurel Beeler had previously ruled in favour of the SEC’s request to compel Musk’s deposition, a decision that Musk contested. However, US District Judge Jacqueline Scott Corley upheld Beeler’s ruling, stating that Musk had not provided sufficient evidence to prove the subpoena was unreasonable.
This development marks the latest episode in the ongoing legal conflict between Musk and the SEC, which originated in 2018 when Musk tweeted about taking Tesla private, claiming he had secured funding. Musk has previously cooperated with the SEC, supplying documents and testifying via videoconference in July 2022. Nevertheless, the SEC now seeks further testimony from Musk after obtaining new documents.
The outcome of Musk’s additional testimony carries significant implications for him and his companies, Tesla and SpaceX, as they navigate regulatory scrutiny and legal challenges.
