The Securities and Exchange Commission (SEC) is reportedly preparing multiple charges against Elon Musk, according to a letter from Musk’s lawyer, Alex Spiro. Musk shared the letter publicly on X (formerly Twitter), where it was also revealed that the SEC has reopened an investigation into Neuralink, Musk’s brain-implant company. However, the details surrounding the charges and the companies involved remain vague.
The letter does not specify the nature of the charges or how many of Musk’s ventures might be implicated. Instead, Spiro criticized the SEC’s actions, claiming that the agency had issued a settlement demand requiring Musk to respond within 48 hours. According to the letter, Musk was given the choice to either pay a monetary penalty or face charges on “numerous accounts.” Spiro’s wording leaves some ambiguity, though it appears to imply that the SEC sought a financial penalty rather than offering any payment to Musk.
Musk’s relationship with the SEC has been turbulent and well-documented over the years. In 2018, he sparked controversy by announcing on Twitter that he had “funding secured” to take Tesla private. Just weeks later, he reversed the statement, confirming that Tesla would remain public. This incident prompted the SEC to sue Musk for misleading investors, resulting in a settlement. Musk agreed to pay a $20 million fine, step down as Tesla’s board chair, and have a legal supervisor review his tweets — a role often referred to as a “Twitter sitter.”
Despite agreeing to these terms, Musk later tried to abandon the supervision arrangement, leading to further legal disputes. The matter escalated all the way to the Supreme Court, which declined to hear Musk’s appeal, leaving him bound to the original settlement terms.
In the letter, Spiro characterizes the SEC’s interactions with Musk as “more than six years of harassment,” reflecting Musk’s long-standing frustration with the regulatory agency.
More recently, the SEC attempted to sanction Musk for failing to appear in connection with an investigation related to his acquisition of Twitter. Although a judge ultimately declined to impose sanctions, Musk was required to reimburse the SEC for travel expenses incurred by the lawyers he stood up.
It is unclear whether the current charges relate to Musk’s acquisition of Twitter or other matters. Notably, the Department of Justice has previously investigated Tesla for potential securities fraud concerning its self-driving technology claims. Meanwhile, in 2023, lawmakers urged the SEC to investigate Neuralink following Musk’s public assurances about the safety of the company’s brain-implant devices.
Adding to Musk’s legal challenges, the SEC has reopened its investigation into Neuralink, though details about the focus of the probe remain scant. Neuralink has already faced significant scrutiny over the ethical and safety aspects of its brain-implant technology. Calls for further investigation by regulators stem from Musk’s bold claims about the devices, which some have questioned as potentially misleading to investors.
True to his provocative style, Musk has not shied away from mocking the SEC publicly. After posting Spiro’s letter, he used his AI tool, Grok, to generate an image of SEC Chair Gary Gensler. The illustration depicted a snail wearing a business suit, seemingly referencing “Gary the Snail,” a character from the children’s show SpongeBob SquarePants. The image appears to be a lighthearted jab at Gensler, suggesting Musk views the SEC’s actions as slow or ineffective.
The SEC’s renewed actions against Musk come at a time when his business empire is under scrutiny from multiple angles. Whether the latest charges are connected to his handling of Tesla, Neuralink, or Twitter remains uncertain, but the potential consequences could have significant implications for Musk’s ventures. The reopened Neuralink investigation could also put additional regulatory pressure on the company as it seeks to commercialize its groundbreaking yet controversial technology.
While Musk’s playful jabs at the SEC highlight his disdain for the agency, the seriousness of these legal challenges cannot be overlooked. As regulatory investigations into his companies continue to expand, Musk may find himself navigating a complex web of legal and financial obstacles in the months ahead.