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 whether or not a possible investigation exists.”
A Reuters source confirmed the settlement offer. “The SEC sent Musk a settlement offer on Tuesday asking for a response within 48 hours, but extended it until Monday after a request for more time,” 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 investigation, who spoke on condition of anonymity to describe a confidential law enforcement proceeding, confirmed that Musk had received 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 review the offer, adding that rejecting a settlement still wouldn't immediately trigger charges by the SEC, which typically sends formal notices before submitting such cases.”
Musk has had several legal battles with the SEC. In 2018, he and Tesla each agreed to payments of $20 million in a settlement over the SEC's complaint that “Musk's misleading tweets” about taking Tesla private caused its stock price to soar “and led to significant market disruption.” He tried to get out of that settlement but was unable to do so. He claims he was “coerced” into signing the deal and that the SEC used the 2018 consent decree to “micromanage” his social media activities.
Musk gains influence in Trump's administration
Musk will have to worry less about government regulation once Trump takes over. Trump has picked Musk to lead a new Department of Government Efficiency, or “DOGE,” which will make recommendations for eliminating regulations, cutting spending and restructuring federal agencies.
As Reuters wrote today, Musk “will gain extraordinary influence after spending more than a quarter of a billion dollars to help Donald Trump win November's presidential election. Its businesses are expected to be well insulated from regulatory and enforcement actions.”
Gensler's November announcement of Gensler's planned departure from the agency touted his work to “adopt several rules to ensure investors get the disclosure they need from publicly traded companies and companies seeking to go public to go.”
Trump chose Paul Atkins to replace Gensler as SEC chairman, calling Atkins an advocate “for common-sense regulations.” Atkins, a former SEC commissioner who founded the consulting firm Patomak Global Partners, testified to Congress in 2019 that the SEC should reduce its disclosure requirements.
