Billionaire Elon Musk is facing a deadline to respond to an offer to resolve a SEC case over his buyout of Twitter, now known as X, which he bought for $44 billion in 2022.
What Happened: Musk recently shared a letter his lawyer Alex Spiro sent to the SEC over a reported 48-hour deadline to respond to an offer to pay a fine or face charges related to his Twitter acquisition. The letter also stated that the SEC had recently reopened an investigation into Neuralink, another Musk-owned company.
The SEC has extended the original 48-hour deadline for Musk’s response to Monday, Dec. 16, according to a report from Reuters. The original settlement offer was sent on Tuesday, with Spiro requesting more time.
Musk is subject to paying a penalty of an undisclosed amount or facing charges from the SEC over the inquiry into the Twitter buyout, according to the report.
The investigation revolves around Musk selling Tesla Inc TSLA stock and increasing his stake in Twitter before he announced a leveraged buyout of the social media company in 2022.
The SEC has been investigating potential securities fraud committed by Musk in the buyout attempt.
Failure to secure a settlement agreement with Musk could lead to charges against the billionaire and a potential Wells notice, according to a CNBC report.
"Oh Gary, how could you do this to me?" Musk said when sharing the post, in reference to SEC Chairman Gary Gensler.
Musk's lawyer Spiro said that they would not be intimidated by the SEC in the settlement attempt.
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Why It's Important: Musk has clashed with the SEC many times over the years, with the latest letter from Spiro responding to the investigation into the Twitter buyout and also stating a case against Neuralink had been reopened.
"This demand follows a multi-year investigation and more than six years of harassment of Mr. Musk by the Commission and its Staff," Spiro writes.
Spiro questioned in the letter whether the "campaign against Mr. Musk" and his companies was directed by the White House or the SEC.
In 2018, the SEC accused Musk of securities fraud related to a tweet in which he said he had "funding secured" to take Tesla private at $420 per share. The takeover offer never occurred. Musk and Tesla each paid $20 million in fines as part of a settlement.
Musk endorsed Donald Trump in the 2024 election, supported him financially and helped campaign in swing state Pennsylvania for him.
SEC Chairman Gensler announced he would step down in January as Trump is inaugurated. Gensler was expected to be fired by Trump.
Musk has been announced to lead the Department of Government Efficiency by Trump, a position that will look to cut government spending and could have a say in new regulations.
The SEC could be looking to wrap up cases against Musk ahead of the January inauguration, with the new administration less likely to continue cases against the billionaire and Trump ally.
TSLA Price Action: Tesla stock is up 2% to $426.52 on Friday versus a 52-week trading range of $138.80 to $431.60. The stock is up 72% year-to-date, posting significant gains since the 2024 election.
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