Lawmakers Urge SEC To Investigate Elon Musk, Neuralink Over Animal Testing

Elon Musk‘s Neuralink has been under intense scrutiny over its treatment of animals since last December.

Now, four U.S. lawmakers are requesting that the U.S. Securities and Exchange Commission investigate whether Musk committed securities fraud by misleading investors about the safety of Neuralink’s brain implant technology.

What Happened: Democratic House Reps. Earl Blumenauer, Jim McGovern, Barbara Lee and Tony Cardenas sent a letter to the SEC on Tuesday, citing veterinary records from Neuralink experiments on monkeys.

Related: Elon Musk-Owned Neuralink’s Brain Implant Could Fetch Over $220M Revenue In ALS Patients By 2030

Records indicated that the animals suffered “debilitating health effects” from the implants, including paralysis, seizures, and brain swelling.

At least 12 young and healthy monkeys were euthanized “as a direct result of problems with the company’s implant,” the letter said, as reported by U.S. News.

Back in September, Musk downplayed investor concerns about the results of Neuralink’s animal testing, stating that “no monkey has died as a result of a Neuralink implant” and that they “chose terminal monkeys.”

The lawmakers believe that Musk’s statement “may have violated” SEC rules in denying a connection.

Why It Matters: Neuralink’s employees have previously reported rushing and botching surgeries on monkeys, pigs, and sheep, resulting in more animal deaths than necessary. Federal investigators launched a probe last December.

Neuralink did not respond to requests for comment on the letter to the SEC.

The scrutiny over safety protocols has come at a time when Neuralink is preparing to test its brain implant in humans — a crucial milestone for its goal of helping patients overcome neurological conditions.

Last year, the Physicians Committee for Responsible Medicine, a medical ethics group, asked the Food and Drug Administration to disqualify Neuralink from further animal tests.

Any news impacting Musk’s reputation usually has a market-moving impact on Tesla Inc TSLA stock.

TSLA Price Action: Tesla stock was trading lower by 3.81%, at $232 at the time of publication on Wednesday.

Now Read: Elon Musk Tells Why OpenAI Being Semi-Independent Is ‘Probably Better For The World’ Than Merging With Microsoft