Elon Musk’s ongoing conflict with the Securities and Exchange Commission (SEC) has escalated with the revelation of an investigation into his brain-computer interface company, Neuralink Corp., and potential enforcement action related to his 2022 Twitter Inc. acquisition. A letter, seemingly from Musk’s lawyer Alex Spiro and posted on X (formerly Twitter), alleges the SEC “reopened” a Neuralink probe this week and is pursuing action concerning Musk’s pre-acquisition Twitter investment.
Table Content:
Renewed Scrutiny Over Twitter and Neuralink
The SEC’s investigation focuses on the timing and disclosure surrounding Musk’s purchase of Twitter stock before his $44 billion acquisition of the platform. The letter claims the SEC imposed a 48-hour deadline for Musk to accept a settlement, threatening enforcement action otherwise. This deadline has reportedly been extended to Monday. The specific focus of the Neuralink investigation remains undisclosed. The SEC declined to comment on both matters.
Elon Musk speaks at a Tesla event
Spiro Challenges SEC Motives, Refuses Testimony
Addressed to outgoing SEC Chair Gary Gensler, Spiro’s letter reveals a recent subpoena for his testimony, which he refused. The letter questions whether Gensler or “the White House” is orchestrating an “improperly motivated campaign against Mr. Musk,” highlighting the contentious nature of the relationship.
A History of Conflict with the SEC
Musk’s history with the SEC is marked by friction, stemming from a 2018 securities fraud lawsuit over tweets about taking Tesla Inc. private. This latest clash further intensifies the ongoing tension. Musk had already taken a jab at the SEC on X earlier on Thursday, foreshadowing the escalating conflict.
Previous Allegations of Misleading Claims
In the fall of 2023, the Physicians Committee for Responsible Medicine and four US lawmakers urged the SEC to investigate Musk and Neuralink for potential securities fraud, citing allegedly misleading claims by the company. This request adds another layer to the ongoing scrutiny surrounding Musk and his ventures.
Conclusion: An Uncertain Future for Musk and the SEC
The revived investigations into Neuralink and Musk’s Twitter investment signal a renewed escalation in the protracted battle between the entrepreneur and the SEC. The outcome of these inquiries and the underlying motivations behind them remain uncertain, promising further developments in this high-profile confrontation. The implications for both Musk’s companies and the broader regulatory landscape are significant and warrant close observation.
