The Securities and Exchange Commission (SEC) has issued a “settlement demand” to tech billionaire Elon Musk, as revealed in a recent social media post by Musk himself. The demand comes as the SEC investigates potential securities fraud related to Musk’s activities in 2022 involving Tesla and Twitter.
In the post, Musk shared a letter from his attorney, Quinn Emanuel Partner Alex Spiro, addressed to SEC Chair Gary Gensler. The letter stated that the agency had pressured Musk to agree to a settlement, including a fine, within 48 hours or face charges related to “Certain Purchases, Sales, and Disclosures of Twitter Shares.”
The investigation revolves around Musk’s actions as he sold Tesla shares and acquired a stake in Twitter ahead of a leveraged buyout of the social network, now known as X. Musk expressed his displeasure with the SEC in his post, questioning Gensler’s actions and sharing an AI-generated image of the SEC chair as a snail-like creature.
A source familiar with the probe shared that the SEC did offer a settlement to Musk, giving him more than 48 hours to respond. If a settlement is not reached, the SEC may issue a Wells Notice before considering charges against Musk.
Musk’s lawyer argued that the SEC’s actions represent “more than six years of harassment” and questioned the motivations behind the agency’s investigations. In the past, Musk and Tesla paid fines to settle a civil securities fraud charge related to a tweet about taking Tesla private.
The recent SEC investigation and potential charges could have significant implications for Musk, Tesla, and X. It highlights the ongoing conflict between Musk and the regulatory agency, with Musk’s lawyer suggesting improper motives behind the SEC’s actions.
The situation also sheds light on Musk’s political affiliations and his involvement with former President Donald Trump. Musk’s actions, particularly regarding the Twitter deal, have attracted additional legal challenges, including a lawsuit from the Oklahoma Firefighters Pension and Retirement System.
As the SEC’s investigation progresses, the outcome could impact Musk’s public image, business dealings, and regulatory compliance. It remains to be seen how Musk will respond to the SEC’s settlement demand and what further developments may arise in this ongoing saga.
