Mark Uyeda Opposed, Peirce Among Four in Favor

In a last-minute move before Republicans took control of the US Securities and Exchange Commission (SEC) in January, the agency’s commissioners held a decisive vote on whether to sue Tesla CEO Elon Musk over his delayed disclosure of stock purchases in Twitter, now X.

The investigation, which had been ongoing since 2022, focused on Musk’s failure to report his acquisition of more than 5% of X’s shares within the legally required 10-day window. Musk, who ultimately completed his $44 billion purchase of the company in 2022, disclosed his stake only after 21 days. This allowed him to buy additional shares at a lower price, which, according to the SEC, saved him $150 million.

SEC Commissioners Split on Musk Lawsuit

Reuters’ latest report revealed that four of the five commissioners voted to move forward with the lawsuit, which included Republican Hester Peirce. The lone dissent came from Republican Mark Uyeda, who would soon take over as acting SEC chair.

Uyeda’s opposition stemmed from concerns over the political implications of the case, as Musk, a prominent backer of US President Donald Trump, has been a lightning rod for partisan debate. Reports indicated that Uyeda pressed SEC enforcement staff to sign a pledge stating that political motivations were not behind the case, but the staff refused and cited the SEC’s standard procedures.

Despite these concerns, Peirce and the three Democratic commissioners voted in favor of bringing the lawsuit against Musk, and the SEC filed the complaint on January 14, just days before the leadership shift. The case centers on Musk’s alleged violation of securities laws, which require investors to disclose a stake of more than 5% in a company within 10 days.

The SEC’s complaint argues that Musk’s late disclosure gave him an unfair advantage in acquiring more shares at a lower price and benefited him financially at the expense of other investors.

Musk, for his part, has denied any wrongdoing while claiming that his delay was due to a misunderstanding of the SEC’s disclosure rules. Investigators, however, explored whether his late filing was intentional, a question that complicated the case and led to delays.

Additionally, Musk’s refusal to participate in a third round of interviews in 2022 further extended the investigation, which forced the SEC to seek a court order to compel his testimony. While Musk was eventually deposed in October 2024, the matter remained unresolved heading into the 2024 election, leaving the SEC’s handling of the case a politically charged issue.

Criticism Intensifies Over Musk’s Influence on DOGE

As the head of the Department of Government Efficiency, Elon Musk’s role in reducing federal staffing and budgets has drawn criticism and has fueled the “Tesla Takedown” movement. In its fifth week, the protests have spread to nearly 90 Tesla showrooms nationwide.

Organizers urge people to “sell your Teslas” and “dump your stock” to hold Musk accountable for his actions.