Elon Musk’s tensions with the Securities and Exchange Commission (SEC) are set to escalate as his cost-cutting initiative targets the regulatory agency. Sources familiar with the matter indicate that the Musk-led Department of Government Efficiency (DOGE) will engage with the SEC in the coming days. 

The arrival of DOGE at the SEC is part of President Donald Trump’s broader effort to curb government spending and regulations. However, Musk’s past conflicts with the SEC make this engagement particularly significant.

Last month, in one of its final actions under then-Chair Gary Gensler, the SEC sued Musk for allegedly failing to disclose his 2022 Twitter stock purchases, reportedly shortchanging investors by over $150 million. Musk responded by calling the SEC a “Totally broken organization” on X. 

Furthermore, a DOGE-affiliated account on X recently sought public input on uncovering waste, fraud, and abuse within the SEC. Similar outreach efforts have been made in recent days. 

However, a Trump administration official clarified that while Musk holds a special government employee designation, he has “no direct influence” over investigations into inefficiencies. White House press secretary "Karoline Leavitt" affirmed that “President Trump has the authority to dismiss anyone” and noted that “Musk has pledged to recuse himself from any conflicts of interest.” 

Musk's Prolonged Battle with the SEC

Elon Musk's relationship with the Securities and Exchange Commission (SEC) has been marked by a series of legal confrontations and public disputes.

The most notable clash began in August 2018 when Musk tweeted about considering taking Tesla private at $420 per share, claiming "funding secured." This announcement led to significant stock volatility and prompted the SEC to file a lawsuit alleging securities fraud, asserting that Musk's statements were false and misleading.

In September 2018, Musk settled with the SEC without admitting wrongdoing, resulting in both Musk and Tesla paying $20 million in fines each, and Musk stepping down as Tesla's chairman for three years.

Despite the settlement, tensions persisted. In February 2019, Musk tweeted about Tesla's production forecasts without obtaining pre-approval, as mandated by the settlement. The SEC sought to hold him in contempt, but the dispute was resolved with a revised agreement outlining specific topics requiring oversight.

The animosity continued into 2023 when the SEC sued Musk for refusing to testify regarding his acquisition of Twitter shares in 2022. The SEC alleged that Musk failed to disclose his increasing stake in a timely manner, potentially saving over $150 million by purchasing shares at lower prices. Musk criticized the SEC's actions, accusing the agency of harassment and political bias.

In December 2024, Musk's attorney revealed that the SEC had issued a settlement demand related to Musk's Twitter acquisition, threatening charges if not accepted within 48 hours. Musk publicly mocked the SEC and its then-chair, Gary Gensler, further intensifying their contentious relationship.

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