Tesla and SpaceX CEO Elon Musk has been ordered to testify for a third time as part of the Securities and Exchange Commission's (SEC) investigation into his $44 billion purchase of Twitter, now known as X, in 2022. The order was issued by Magistrate Judge Laurel Beeler, who has given Musk and the SEC a week to agree on a date and location for the testimony.
Judge Beeler's order comes after the two sides failed to reach an agreement during a court hearing last December. In her order, Beeler noted that Musk had initially agreed to a date but failed to appear, claiming that the SEC's investigation was baseless and harassing and sought irrelevant information.
Musk also contested the authority of the subpoena, asserting that it was issued by an SEC staff member who was appointed by the SEC's Director of Enforcement, rather than by an officer appointed by the President, a court, or the head of a department, as required by the U.S. Constitution.
Nonetheless, Judge Beeler upheld the SEC's subpoena, stating that the testimony was not unduly burdensome for Musk. The SEC had given Musk the option to testify in Texas, where he resides.
The SEC has been conducting a fact-finding investigation into the period leading up to Musk's acquisition of Twitter, when the social media company was publicly traded. The agency clarified that it has not yet determined whether any federal securities laws were violated.
Musk has already provided testimonies twice in relation to the case. Since his previous testimonies, the SEC has received thousands of new documents from various parties, including hundreds of documents from Musk himself.
The $44 billion deal to acquire Twitter and take it private was finalized in October 2022, following a legal battle with the company's previous leadership. Musk initially attempted to back out of the deal after signing the agreement in April 2022, leading Twitter to sue him to enforce the acquisition.
As of now, neither the SEC nor Musk's lawyer have responded to requests for comment regarding the order for Musk's third testimony.
The upcoming testimony, which is yet to be scheduled, will mark another chapter in the ongoing investigation, shedding more light on the circumstances surrounding Musk's purchase of Twitter and its potential implications for federal securities laws.