Musk Faces SEC Action Over Twitter Stock Purchase

Elon Musk is facing potential penalties from the U.S. Securities and Exchange Commission (SEC) related to his failure to promptly disclose his Twitter stock purchases prior to acquiring the company in 2022. Musk's lawyer described the SEC's demand for a monetary payment as a 'misguided scheme' aimed at intimidating him, and noted the reopening of an SEC investigation into Musk's Neuralink. A lawsuit from a Twitter investor claims Musk delayed revealing his stake until it exceeded 9%, causing ordinary investors to suffer losses as Twitter's stock surged by 27% following his announcement. The SEC has not confirmed the details of the alleged demand, adhering to its policy of maintaining confidentiality in investigations. Musk's contentious history with the SEC includes a previous $20 million fine related to tweets about taking Tesla private, a settlement he later contested. Additionally, SEC Chairman Gary Gensler will resign in January 2025, with Trump planning to nominate Paul Atkins as his successor.