The U.S. Securities and Exchange Commission (SEC) is seeking sanctions against Elon Musk, CEO of Tesla and SpaceX, after he failed to appear for a scheduled court-ordered testimony regarding his $44 billion acquisition of Twitter (now rebranded as X).

Shotgun Pistol - No FFL Required, Shipped Directly To Your Home

MORE NEWS: The “Party of Women’s Rights” Votes Against Bill to Deport Rapists

Close

The SEC is investigating whether Musk violated securities laws during his 2022 acquisition of Twitter stock.

The SEC filed a motion in a San Francisco federal court on Friday, requesting that Musk be held in civil contempt for not appearing at his deposition, which was scheduled for September 10.

The SEC stated that Musk informed the commission just three hours before the testimony that he would not be attending.

Has Taylor Swift's endorsement of Kamala Harris swayed your vote?

By completing the poll, you agree to receive emails from LifeZette, occasional offers from our partners and that you've read and agree to our privacy policy and legal statement.

The deposition had been ordered by the court as part of the SEC’s ongoing investigation into Musk’s stock purchase.

According to SEC attorney Robin Andrews, Musk’s absence violated a May 31 court order.

The SEC claims that Musk’s last-minute cancellation was unjustified and described his actions as “gamesmanship.” Andrews argued that Musk’s failure to testify demonstrated a pattern of delay tactics that should not be tolerated.

MORE NEWS: Many Hollywood Elite ‘Scared To Death’ To Speak On Diddy’s Sex Trafficking: Report [WATCH]

“Musk’s excuse itself smacks of gamesmanship,” Andrews wrote in the court filing. “The court must make clear that Musk’s gamesmanship and delay tactics must cease.”

The SEC investigation centers around whether Musk violated securities laws by delaying the disclosure of his significant stake in Twitter, as he began accumulating shares in early 2022.

By law, investors are required to disclose when they acquire more than 5% of a public company’s stock. Musk eventually disclosed his 9.2% ownership stake in Twitter, after which he made an offer to purchase the entire company.

Musk’s attorney, Alex Spiro, defended the Tesla and SpaceX CEO, stating that Musk’s decision to skip the testimony was due to an “emergency” related to his role as chief technical officer at SpaceX. On the day of the deposition, Musk was overseeing the launch of SpaceX’s Polaris Dawn mission at Cape Canaveral, Florida.

Elon Musk CEO of SpaceX, speaks to the media during a press conference after the Falcon Heavy Launch on Feb 6, 2018, at the Kennedy Space Center, FL.

Spiro argued that Musk’s absence was unavoidable, as his presence at the launch was crucial to the safety of the astronauts.

MORE NEWS: 98K ‘Unconfirmed Citizenship’ Voters Get Green Light To Vote In November In Arizona [WATCH]

“Musk’s absence from the launch could have endangered astronauts’ lives,” Spiro wrote, calling the SEC’s push for sanctions “drastic” and unnecessary.

He added that Musk’s testimony has been rescheduled for October 3, and there is no reason to believe such an emergency will reoccur.

Musk himself responded to the controversy on his social media platform, X, confirming that the Polaris Dawn mission was one of SpaceX’s highest-risk astronaut missions.

He explained that stringent weather conditions had only cleared on the night of the launch, requiring him to make a critical “go vs. no-go” decision.

MORE NEWS: Oprah Gets Reality Check When Approached by Black Trump Supporter [WATCH]

“The weather constraints on this mission are also extremely high and only cleared that night. I had to make a go vs no-go decision. Their lives came first,” Musk stated.

Despite Spiro’s defense, the SEC remains concerned that Musk may not appear for his rescheduled testimony. The regulator has expressed doubts about whether the October 3 deposition will take place and indicated that it would take further action if necessary.

This is not the first time Musk has clashed with the SEC. The two have a long history of legal disputes, dating back to 2018 when Musk tweeted about potentially taking Tesla private, claiming he had “funding secured.”

The SEC found this claim to be misleading and filed a lawsuit against him. Musk eventually settled the case by paying a $20 million fine, agreeing to have Tesla lawyers review some of his social media posts in advance, and stepping down as chairman of Tesla.

More recently, Musk has voiced his frustration with the SEC on various platforms, accusing the agency of unfairly targeting him while failing to protect retail investors from hedge funds.

In an interview on Lex Fridman’s podcast, Musk criticized the SEC’s handling of Tesla stock manipulation, stating, “Not once did the SEC go after any of the hedge funds who were nonstop shorting and distorting Tesla.”

MORE NEWS: Kamala’s Press Dodging Called Out By CNN’s Jake Tapper Live On Air [WATCH]

The SEC’s current investigation is focused on whether Musk’s delayed disclosure of his Twitter stock purchases violated securities laws.

Twitter shareholders have also raised concerns about Musk’s actions, alleging that his late disclosure may have impacted the market and affected their investments.

In July, Musk acknowledged that he may have misunderstood the SEC’s disclosure requirements regarding the acquisition of Twitter shares.

He referred to the delay in disclosure as a “mistake” and claimed that there was no intent to deceive investors. Nevertheless, the SEC is continuing its probe into the matter.

The legal battle over Musk’s acquisition of Twitter has drawn significant attention, particularly because of the scale of the deal and Musk’s high-profile business ventures, which include Tesla, SpaceX, and other ventures.

The outcome of the SEC investigation could have significant implications for Musk and his companies, as well as for how the SEC handles enforcement of securities laws in future cases involving high-profile individuals.

As the investigation proceeds, the SEC has indicated that it will continue to pursue Musk’s testimony and is prepared to take further legal action if necessary.

For now, Musk’s testimony is scheduled for October 3, and it remains to be seen whether he will comply with the court order.

The opinions expressed by contributors and/or content partners are their own and do not necessarily reflect the views of LifeZette. Contact us for guidelines on submitting your own commentary.