Elon Musk Faces Potential Sanctions as SEC Investigates Twitter Purchase

Elon Musk is facing possible sanctions from the U.S. Securities and Exchange Commission (SEC) following his failure to attend a court-ordered deposition regarding his $44 billion acquisition of Twitter. The SEC’s move came after Musk canceled his scheduled testimony just hours before it was set to occur on September 10, prompting the agency to seek sanctions.

According to a filing in a San Francisco federal court, the SEC intends to ask the court to hold Musk in civil contempt for violating a May 31 court order that compelled him to testify. The investigation revolves around Musk’s delayed disclosure of his initial 9.2% Twitter stock purchase, a potential violation of securities laws requiring investors to disclose ownership of more than 5% of a public company.

Musk’s attorney, Alex Spiro, argued that Musk’s absence was due to an emergency involving SpaceX’s Polaris Dawn mission, asserting his presence was crucial for astronaut safety. Spiro called the SEC’s actions “drastic” and emphasized that the deposition has been rescheduled for October 3.

The SEC, however, remains concerned about whether Musk will comply with the new date, accusing him of “delay tactics.” This is not Musk’s first clash with the SEC; in 2018, he settled a lawsuit over tweets about taking Tesla private, agreeing to pay $20 million and step down as Tesla chairman.