The Securities and Exchange Commission intends to seek sanctions against Elon Musk over his failure to appear for testimony in an investigation related to his takeover of Twitter, now called X, the regulator said in a court filing Friday.
Earlier this year, a federal judge ordered Musk to testify as part of the SEC’s probe of the billionaire’s $44 billion acquisition. The agency is examining whether Musk followed the law when disclosing his purchases of Twitter stock and whether his statements in relation to the deal were misleading.
Taking action against unrelated companies isn’t typically allowed.
The SECs quarrel is with Elon and Twitter and has nothing to do with his other companies.
However, much like his 420 tweet where they were able to have him resign as chair of Tesla, they could probably do something with sanctions that target him specifically, like disallow him from being on the board of a public company.
But that’s about as direct of an impact as they could have on the other companies.