Elon Musk accused of stock market manipulation again, this time in Twitter acquisition

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The relationship between Elon Musk and the SEC is increasingly looking like a never-ending legal soap opera. The latest episode played out this week, when The US financial markets regulator has decided to file a complaint against the boss of Tesla and SpaceX. At the heart of the accusation is an alleged manipulation during the acquisition of Twitter, which became X, in 2022.

A financial scheme that would have saved millions

According to the SEC investigation, Elon Musk deliberately failed to declare his acquisition of more than 5% of Twitter shares within the legal deadline in March 2022. This maneuver would have allowed him to continue his purchases at an artificially low price, thus avoiding spending at least an additional $150 million. However, US law requires investors to promptly report any stakes acquired above this threshold, precisely to avoid this type of market manipulation.

The strategy was apparently simple, but effective: by keeping his increase in capital a secret, Musk prevented the market from reacting to the information. Once the announcement was made public, Twitter's share price jumped by more than 27%, proving the significant impact of this information on the company's valuation. Shareholders who sold their shares during this period of opacity therefore found themselves harmed, selling their shares at an artificially low price.

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A buildup of accusations that weakens Musk's defense

This new complaint comes in an already tense context. In October 2023, the SEC had already filed a lawsuit against the billionaire for his refusal to testify as part of the investigation into the acquisition of Twitter. Despite the protests of his lawyer, Alex Spiro, who claims that his client has already testified ” on several occasions as part of this misguided investigation “, the regulator is keeping up the pressure.

Twitter shareholders are not left out. A group of investors has also filed a complaint against Musk on the same grounds, believing they were harmed by this late disclosure. This convergence of accusations strengthens the SEC's position and complicates the defense of the billionaire, whose strategy is to present these proceedings as a form of regulatory harassment.

A standoff that goes beyond Twitter

The story between Elon Musk and the SEC is not limited to the Twitter affair. In 2018, the regulator had already sanctioned the billionaire for tweets about Tesla, forcing him to pay a $20 million fine and to give up his chairmanship of the company's board of directors. This series of confrontations paints the portrait of an entrepreneur in permanent conflict with the regulatory authority.

The issue now goes beyond Twitter. It questions the ability of regulators to supervise the actions of big tech bosses, particularly those who, like Musk, use their media influence and their fortune to push the limits of the regulatory framework. The justice system's response to this new complaint could therefore set an important precedent.

• SEC accuses Elon Musk of concealing the purchase of more than 5% of Twitter shares in 2022
• This manipulation would have allowed the billionaire to save at least $150 million
• The case adds to a series of disputes between Musk and regulators, weakening his position

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