SEC Acting Chair Mark Uyeda reportedly voted against suing Elon Musk over the delayed disclosure of his Twitter stock purchases—making him the only one to oppose the move among five commissioners, according to Reuters. The case, filed in January, claims Musk violated securities law by failing to report that he’d crossed a 5% stake in Twitter, allowing him to quietly keep buying shares and potentially save $150 million.
Uyeda Breaks from SEC as Musk Fires Back
While four commissioners, including Hester Peirce, voted to move forward with the lawsuit, Uyeda dissented. Both he and Peirce have a track record of pushing back against SEC enforcement during Gary Gensler’s tenure.
Musk, unsurprisingly, didn’t hold back. He called the SEC a “totally broken organization” on X and accused it of ignoring “actual crimes.” His lawyer told Cointelegraph the case was proof the SEC “cannot bring an actual case.”
Musk has until April 4 to respond.
Potential Implications for Tesla Investors
While this lawsuit focuses on Musk’s Twitter dealings, it could still ripple out to Tesla (TSLA). Musk’s run-ins with regulators have shaken the stock before. Think back to 2018—his “taking Tesla private” tweet stirred up plenty of drama and ended with both him and Tesla paying $20 million in fines. So even if Tesla isn’t directly in the spotlight this time, investors should keep tabs on how this impacts Tesla.
Is Tesla a Buy, Hold, or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 14 Buys, 11 Holds, and 11 Sells assigned in the past three months. Furthermore, the average TSLA price target of $335.32 per share implies 23.9% upside potential.
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