As Elon Musk and the U.S. Securities and Exchange Commission (SEC) explore the possibility of a settlement over the delayed disclosure of his Twitter equity, the protracted legal battle between the two sides that has continued since 2018 is entering its final phase.
Reuters reported on the 17th (local time) that Musk and the SEC are discussing a potential settlement related to the matter. According to court filings, the two sides are conferring on ways to resolve the case without further litigation and have asked the court for an extension to adjust the schedule.
The dispute began in 2022 when, during Musk's acquisition of Twitter, he disclosed his 5% equity stake 11 days past the statutory deadline. The SEC viewed this as a violation of securities law and launched an investigation, and in 2025 it sued Musk for securities fraud. Musk's side argued it was a simple mistake, but motions to dismiss and to transfer venue were not granted.
This is not the first clash between the two sides. In 2018, Musk posted on social media that he was considering taking Tesla private, which led to an SEC lawsuit and a settlement that ended the case. In the process, Musk stepped down as Tesla's board chair for three years and agreed not to post on social media without prior legal review. Musk and Tesla also each paid a $20 million fine.
The conflict continued afterward. In 2021, when Musk conducted an online poll asking whether he should sell Tesla equity, the SEC again opened an investigation, and Musk filed a lawsuit claiming a violation of free speech but lost.
If a settlement is reached, the legal dispute between the two sides that began in 2018 is likely to effectively come to an end. In the market, the shift in the regulatory stance following the recent inauguration of a pro-business SEC leadership is also seen as a factor influencing the talks.