The Securities and Exchange Commission (SEC) is preparing to reprimand billionaire Elon Musk for failing to appear for a scheduled testimony related to the agency’s investigation into his $44 billion acquisition of Twitter, now known as X. Musk was supposed to testify on September 10 but skipped the session, citing an urgent trip to Cape Canaveral, Florida, for a SpaceX rocket launch.
This marks the second instance Musk has missed testimony regarding the SEC probe, with the SEC’s attorney, Robin Andews, stating that Musk’s absence is a clear defiance of a lawful subpoena and a court order. In a filing to the San Francisco federal court, Andews emphasized the need for the court to address Musk’s “gamesmanship and delay tactics.”
Musk’s attorney, Alex Spiro, defended his client, asserting that the SEC’s proposed sanctions are excessive. Spiro mentioned that a new date for the testimony has been set and emphasized the emergency nature of the situation due to the rocket launch.
In response to inquiries, Spiro reiterated that the testimony was rescheduled due to the critical launch, recalling that previous SEC attempts to escalate matters in court were met with pushback.
Musk previously settled with the SEC in 2018, agreeing to step down as Tesla’s chairman for at least three years and pay a $20 million fine.