Elon Musk Accuses SEC of Harassment, the Commission Responds

The Securities and Exchange Commission (SEC) has responded to Tesla and Elon Musk's complaints that the regulator has been harassing them following a $40 million settlement.

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Musk tweeted on August 7, 2018, that he could take Tesla private for $420 per share, which was a significant premium to the stock's trading price at the time, that funding for the transaction was in place, and that the only remaining question was a shareholder vote.

Musk's tweets, according to the SEC's complaint, caused Tesla's stock price to spike by almost 6% on August 7, causing significant market disruption.

​In a letter signed by a representative of Elon Musk, the SEC has been accused of neglecting to pay Tesla shareholders the $40 million it obtained as part of the settlement in these cases and that it claims to be holding for them.

Instead, the SEC has allegedly spent its vast resources on continuous, unjustified investigations into Mr. Musk and Tesla.

The SEC responded to the allegations in a letter filed with the New York Southern District Court on February 18, 2022.

The letter is the first time the regulator has seen Tesla and Mr. Musk express any concerns about the distribution of the fines Mr. Musk and Tesla paid to settle this action, according to the agency.

The Distributions staff of the Commission petitioned the Court to establish a fair fund and designate a tax administrator and distribution agent. According to the SEC, its staff has been working closely with the distribution agent and the Division of Economic and Risk Analysis to devise a system to compensate investors who have been injured by the misbehavior asserted in the Commission's Complaints against Tesla and Mr. Musk.