Elon Musk has asserted that the Securities and Exchange Commission (SEC) is pressuring him to either pay a penalty or face legal actions regarding his disclosures related to his Twitter stock purchases prior to acquiring the platform in 2022. In a letter shared on X (formerly Twitter), Musk’s lawyer, Alex Spiro, described the SEC’s demands for payment as a “misguided scheme” that won’t deter Musk. The letter also hinted at a renewed investigation into Neuralink, Musk’s brain-computer interface venture.
While the SEC has not publicly commented on this letter or the purported demands directed at Musk, its policy is to keep investigation details confidential. Spiro’s correspondence responds to concerns raised by SEC staff regarding the timeline and disclosures of Musk’s Twitter shares, especially after a lawsuit claimed that Musk delayed revealing his ownership stake, which may have adversely affected ordinary investors.
Musk acquired Twitter for US$44 billion in October 2022, but faced accusations of failing to disclose his significant stake in the company until it had nearly doubled. This delay allegedly led to investor losses prior to the announcement, which resulted in a rapid increase in Twitter’s share value. Musk has had a contentious relationship with the SEC since 2018, particularly regarding free speech concerns related to his communications about Tesla.