An SEC spokesperson told Ars today that the commission’s policy is “to conduct investigations on a confidential basis to preserve the integrity of its investigative process. The SEC therefore does not comment on the existence or nonexistence of a possible investigation.”
A Reuters source confirmed the settlement offer. “The SEC sent Musk a settlement offer on Tuesday seeking a response in 48 hours, but extended it to Monday after a request for more time, the source said,” according to a Reuters article today.
The settlement offer was also confirmed by a source who spoke to The Washington Post. “One person familiar with the probe, who spoke on the condition of anonymity to describe a confidential law enforcement proceeding, confirmed that Musk had been sent a settlement offer in recent days,” the Post wrote last night. But the person said they believed the tech billionaire had actually been given until Monday to evaluate the offer—adding that rejecting a settlement still would not immediately trigger charges by the SEC, which typically sends formal notices before such cases are brought.
Musk has had several legal battles with the SEC. In 2018, he and Tesla each agreed to $20 million payments in a settlement over the SEC’s complaint that “Musk’s misleading tweets” about taking Tesla private caused the stock price to jump “and led to significant market disruption.” He has tried and failed to get out of that settlement, claiming that he was “forced” into signing the deal and that the SEC used the 2018 consent decree to “micro-manage” his social media activity.
Musk to have influence in Trump admin
Musk won’t have to worry as much about government regulation once Trump takes over. Trump picked Musk to lead a new Department of Government Efficiency, or “DOGE,” which will make recommendations for eliminating regulations, cutting expenses, and restructuring federal agencies.
As Reuters wrote today, Musk “is set to gain extraordinary influence after spending more than a quarter of a billion dollars to help Donald Trump win November’s presidential election. His companies are expected to be well insulated from regulation and enforcement measures.”
The SEC’s November announcement of Gensler’s planned departure from the agency touted his work to adopt “several rules to ensure that investors get the disclosure they need from public companies and companies seeking to go public.”
Trump chose Paul Atkins to replace Gensler as SEC chair, calling Atkins an advocate “for common sense regulations.” Atkins, a former SEC commissioner who founded the Patomak Global Partners consultancy firm, testified to Congress in 2019 that the SEC should reduce its disclosure requirements.
