Elon Musk Secures Extension for SEC Response Regarding Twitter Stake Disclosure

Elon Musk has been granted an extension by the Securities and Exchange Commission to respond to a legal challenge concerning allegations that he failed to appropriately reveal his acquisition of Twitter shares prior to proposing a buyout for the social media platform.

In a legal motion submitted on Thursday within the U.S. District Court of Washington, both the SEC and Musk agreed to extend the deadline for his official reply until August 29. Initially, this deadline was set for June 6 and later adjusted to July 18, as detailed in the court document.

The SEC initiated legal proceedings against Musk in January. The commission accuses Musk, who holds leadership roles at Tesla and SpaceX, of breaching securities regulations in 2022 by neglecting to report his acquisition of a significant Twitter stake. This omission allegedly allowed Musk to save at least $150 million when acquiring shares subsequent to when he was legally obligated to disclose his financial interest, according to the commission.

In 2022, Musk completed the acquisition of Twitter, subsequently rebranding it to ‘X’, for a total of $44 billion.

The SEC aims to conduct a jury trial and is asking the court to compel Musk to return any unjust financial gains derived from this situation, along with imposing a monetary penalty.

Musk's legal team, representing one of the wealthiest individuals globally, has consistently refuted any allegations of wrongdoing, labeling the lawsuit as baseless.