section_path: Legal affairs
section_name: Legal affairs
paragraph_text: Legal affairs
  
  In 2018, Musk was sued by the U.S. Securities and Exchange Commission (SEC) for a tweet stating that funding had been secured for potentially taking Tesla private. The securities fraud lawsuit characterized the tweet as false, misleading, and damaging to investors, and sought to bar Musk from serving as CEO of publicly traded companies. Two days later, Musk settled with the SEC, without admitting or denying the SEC's allegations. As a result, Musk and Tesla were fined $20 million each, and Musk was forced to step down for three years as Tesla chairman but was able to remain as CEO. Shareholders filed a lawsuit over the tweet, and in February 2023, a jury found Musk and Tesla not liable. Musk has stated in interviews that he does not regret posting the tweet that triggered the SEC investigation.
  
  In 2019, Musk stated in a tweet that Tesla would build half a million cars that year. The SEC reacted by asking a court to hold him in contempt for violating the terms of the 2018 settlement agreement. A joint agreement between Musk and the SEC eventually clarified the previous agreement details, including a list of topics about which Musk needed preclearance. In 2020, a judge blocked a lawsuit that claimed a tweet by Musk regarding Tesla stock price ("too high imo ") violated the agreement. Freedom of Information Act (FOIA)-released records showed that the SEC concluded Musk had subsequently violated the agreement twice by tweeting regarding " Tesla's solar roof production volumes and its stock price".
  
  In October 2023, the SEC sued Musk over his refusal to testify a third time in an investigation into whether he violated federal law by purchasing Twitter stock in 2022. In February 2024, Judge Laurel Beeler ruled that Musk must testify again. In January 2025, the SEC filed a lawsuit against Musk for securities violations related to his purchase of Twitter. In January 2024, Delaware judge Kathaleen McCormick ruled in a 2018 lawsuit that Musk's $55 billion pay package from Tesla be rescinded. McCormick called the compensation granted by the company's board "an unfathomable sum" that was unfair to shareholders.
  
  In 2018, Musk was sued by the U.S. Securities and Exchange Commission (SEC) for a tweet stating that funding had been secured for potentially taking Tesla private. The securities fraud lawsuit characterized the tweet as false, misleading, and damaging to investors, and sought to bar Musk from serving as CEO of publicly traded companies. Two days later, Musk settled with the SEC, without admitting or denying the SEC's allegations. As a result, Musk and Tesla were fined $20 million each, and Musk was forced to step down for three years as Tesla chairman but was able to remain as CEO. Shareholders filed a lawsuit over the tweet, and in February 2023, a jury found Musk and Tesla not liable. Musk has stated in interviews that he does not regret posting the tweet that triggered the SEC investigation.
  
  In 2019, Musk stated in a tweet that Tesla would build half a million cars that year. The SEC reacted by asking a court to hold him in contempt for violating the terms of the 2018 settlement agreement. A joint agreement between Musk and the SEC eventually clarified the previous agreement details, including a list of topics about which Musk needed preclearance. In 2020, a judge blocked a lawsuit that claimed a tweet by Musk regarding Tesla stock price ("too high imo ") violated the agreement. Freedom of Information Act (FOIA)-released records showed that the SEC concluded Musk had subsequently violated the agreement twice by tweeting regarding " Tesla's solar roof production volumes and its stock price".
  
  In October 2023, the SEC sued Musk over his refusal to testify a third time in an investigation into whether he violated federal law by purchasing Twitter stock in 2022. In February 2024, Judge Laurel Beeler ruled that Musk must testify again. In January 2025, the SEC filed a lawsuit against Musk for securities violations related to his purchase of Twitter. In January 2024, Delaware judge Kathaleen McCormick ruled in a 2018 lawsuit that Musk's $55 billion pay package from Tesla be rescinded. McCormick called the compensation granted by the company's board "an unfathomable sum" that was unfair to shareholders.