2025-10-12T01:31:00Z

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Imagine being caught in a legal tug-of-war with the SEC, the very agency meant to safeguard investors, while your empire hangs in the balance. That’s the reality for Elon Musk, who is currently locked in a legal battle surrounding his social media platform, X—formerly known as Twitter.

The SEC, America’s financial watchdog, has filed a significant complaint against Musk, accusing him of failing to disclose his substantial stake in X in a timely fashion. This oversight, they claim, allowed him to scoop up shares at “artificially low prices,” potentially saving him a staggering $150 million. Yes, you heard that right—one hundred fifty million dollars—and this could lead to him facing hefty fines.

But this isn’t Musk’s first dance with the SEC. Just earlier this year, during a candid chat on Lex Fridman’s podcast, Musk opened up about his turbulent history with the agency. He revealed that he once had to pay a fine to the SEC to prevent Tesla from crashing down, despite being found not guilty by a jury in San Francisco. “The jury unanimously found me not guilty,” he stated, adding that his compliance was less about guilt and more about survival. Musk described the SEC's tactics as “extremely bad behavior,” even calling it corrupt.

Why such drastic measures? Back then, Tesla was teetering on the brink of bankruptcy. Musk recalled a dire warning from his finance director: if the banks froze their credit lines, it would spell instant doom for the company. “There would never have been any possibility of a lawsuit, because Tesla would have died,” he explained.

In an emotional metaphor, Musk likened the SEC's approach to a hostage situation: “It’s like putting a gun to your kid’s head and asking them to pay $20 million. It’s like a hostage negotiation.”

Originally, the SEC's ire was ignited by a tweet from Musk, which they interpreted as potentially misleading regarding Tesla's future, including speculations about the company's delisting. However, a court ruled in his favor, dismissing the claims as unfounded. Yet, this hasn’t stopped the SEC from pursuing Musk once more, as he stands firm against their latest allegations concerning his dealings with X.