SEC reopens investigation into Elon Musk and Neuralink

The US Securities and Exchange Commission (SEC) has reopened its investigation into Neuralink, Elon Musk’s brain-chip startup, according to a letter shared by Musk on X, formerly known as Twitter. The letter, dated Dec. 12 and written by Musk’s attorney Alex Spiro, also revealed that the SEC issued Musk a 48-hour deadline to settle a probe into his $44 billion takeover of Twitter or face charges. The settlement amount remains undisclosed.

Musk’s tumultuous relationship with the SEC has resurfaced amid allegations that he misled investors about Neuralink’s brain implant safety. Despite ongoing investigations, the extent to which the SEC can take action against Musk is uncertain. Musk, who also leads Tesla and SpaceX, is positioned to gain significant political leverage after investing heavily in supporting Donald Trump’s presidential campaign. Trump, in turn, has appointed Musk to a government reform task force, raising questions about potential regulatory leniency toward his ventures.

In the letter, Spiro criticised the SEC’s actions, stating Musk would not be “intimidated” and reserving his legal rights. This marks the latest in a series of clashes between Musk and the SEC, including a 2018 lawsuit over misleading Tesla-related tweets, which Musk settled by paying $20 million and stepping down as Tesla chairman. Both the SEC and Neuralink have yet to comment on the reopened investigation.