Federal Judge Orders Elon Musk to Testify Again in SEC Probe of $44 Billion Twitter Takeover

SpaceX, X (formerly known as Twitter), and Tesla CEO Elon Musk speaks during live interview with Ben Shapiro at the symposium on fighting antisemitism on January 22, 2024 in Krakow, Poland.

Omar Marques

A federal judge has ordered Elon Musk, CEO of SpaceX, X (formerly known as Twitter), and Tesla, to testify again in the ongoing probe by the U.S. Securities and Exchange Commission (SEC) regarding his $44 billion takeover of Twitter. The judge, Laurel Beeler, has given the regulator and Musk a week to agree on a date and location for the interview.

This order, issued on Saturday night, follows a tentative ruling by Judge Beeler in December, which favored the regulator.

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The SEC filed a lawsuit against Musk in October, compelling him to testify as part of an investigation into his 2022 acquisition of Twitter, which he later renamed X. Musk initially refused to attend an interview in September as part of the probe, according to the SEC.

The investigation primarily focuses on whether Musk followed the law while filing the necessary paperwork relating to his purchases of Twitter stock, as well as the veracity of his statements concerning the deal.

Musk contested the SEC’s attempt to interview him, claiming he had already been interviewed twice and accusing the regulator of harassing him.

Judge Beeler subsequently rejected Musk’s argument, asserting that the SEC possessed the authority to issue the subpoena, which was seeking relevant information.

If an agreement cannot be reached between Musk and the SEC on a date and time for the interview, Judge Beeler stated that she would be prepared to hear from both parties and make a decision.

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This feud between Musk and the SEC dates back to when the regulator had sued him for tweeting “funding secured” in 2018 in relation to a potential plan to privatize Tesla. Musk eventually settled the case by accepting that his tweets about the electric vehicle manufacturer would be reviewed by a Tesla lawyer. In 2019, the SEC sued him again for allegedly violating this provision.

Musk has approached the U.S. Supreme Court, seeking a review of the settlement, arguing that it infringes upon his constitutional right to free speech.