Legal Status Profiles

Records

Elon Musk

Business executive who is chief executive officer of Tesla, Inc. and chief executive officer, chief technology officer and chairman of SpaceX.

On appealLatest source dated 2026-10Last reviewed 2026-10-26

What is Elon Musk’s legal position?

SEC v. Musk (2018) - 'funding secured' statements

Settled

Current position. The matter was resolved by settlement without admission or denial of the SEC's allegations; Tesla's 2026 proxy states there is no restriction on Musk serving as an officer or director.[1, 2, 3, 4]

Authority
U.S. Securities and Exchange Commission; U.S. District Court for the Southern District of New York
Status date
2019-04-26

History

  1. 2018-08-07 Musk posted on Twitter that he was considering taking Tesla private at $420 and that funding was secured.
  2. 2018-09-27 SEC sued Musk in the Southern District of New York (No. 1:18-cv-08865) alleging false and misleading statements.
  3. 2018-09-29 SEC announced settlement: Musk and Tesla each to pay $20 million; Musk to step down as Tesla chairman for three years; no admission or denial.
  4. 2018-10-16 Court entered final judgment on the settlement.
  5. 2019-04-26 Settlement amended.

In re Tesla, Inc. Securities Litigation - 'funding secured' shareholder class action

Closed

Current position. The jury verdict that Musk and Tesla were not liable stands after the Ninth Circuit's November 2024 ruling.[5, 6, 7]

Authority
U.S. federal district court, San Francisco (Judge Edward Chen); U.S. Court of Appeals for the Ninth Circuit
Status date
2024-11-06

History

  1. 2023-02-03 Jury found Musk and Tesla not liable on shareholders' claims over the August 2018 tweets.
  2. 2024-11-06 Ninth Circuit affirmed denial of a new trial, leaving the verdict in place.

Tornetta v. Musk / In re Tesla, Inc. Derivative Litigation - 2018 CEO performance award

Civil judgment

Current position. The 2018 award is reinstated, with $1 nominal damages, following the Delaware Supreme Court's December 2025 decision and the March 2026 amended final judgment.[8, 9, 10, 11, 12]

Authority
Delaware Court of Chancery; Delaware Supreme Court
Status date
2026-03-18

History

  1. 2018-01 Tesla board granted Musk a 10-year performance stock option award (303,960,630 shares as stated in Tesla's 10-K/A, exercise price $23.34).
  2. 2022-11 Five-day trial held in the Court of Chancery (C.A. No. 2018-0408).
  3. 2024-01-30 Court of Chancery post-trial opinion found the grant not entirely fair and ordered rescission.
  4. 2024-06-13 Tesla stockholders voted again to approve the 2018 award.
  5. 2024-12-02 Court of Chancery denied defendants' motion to revise based on the stockholder vote and awarded plaintiff's counsel $345 million in fees.
  6. 2025-12-19 Delaware Supreme Court (per curiam, en banc) reversed the rescission remedy, reinstated the 2018 award, awarded $1 nominal damages and reduced the fee award to a quantum meruit basis with a four-times multiplier; it did not rule on liability or ratification.
  7. 2026-03-18 Court of Chancery entered an Amended Final Order and Judgment awarding plaintiff's counsel approximately $65 million in fees, costs and interest.

SEC v. Musk (2025) - late disclosure of Twitter stake

Settled

Current position. The case was resolved by a court-approved consent settlement under which the Musk trust pays a $1.5 million penalty without admitting or denying the allegations.[13, 14, 15, 16, 17]

Authority
U.S. Securities and Exchange Commission; U.S. District Court for the District of Columbia
Status date
2026-07-08

History

  1. 2025-01-14 SEC sued Musk (No. 1:25-cv-00105) alleging he failed to timely file a beneficial ownership report for his Twitter stake in 2022, in violation of Exchange Act Section 13(d).
  2. 2026-05-04 SEC filed an amended complaint adding the Elon Musk Revocable Trust and moved for a consent judgment with a $1.5 million penalty against the Trust, without admitting or denying; Musk personally to be dismissed.
  3. 2026-07-08 Judge Sparkle L. Sooknanan approved the consent judgment against the Trust, accepting the settlement 'despite its significant misgivings' (as quoted by Bloomberg).

Pampena v. Musk - Twitter shareholder class action over May 2022 statements

On appeal

Current position. A partial civil judgment against Musk is on appeal to the Ninth Circuit as of Tesla's October 2026 proxy statement.[4, 18, 19]

Authority
U.S. District Court for the Northern District of California; U.S. Court of Appeals for the Ninth Circuit
Status date
2026-07-30

History

  1. 2026-03-20 Jury found two May 2022 statements by Musk about his pending Twitter purchase to be false and misleading in violation of securities law.
  2. 2026-04-03 Court entered a partial judgment against Musk in favour of a class of investors who sold Twitter equity between 13 May and 4 October 2022.
  3. 2026-07-06 Court granted Musk judgment as a matter of law on one of the two statements and denied the motion otherwise.
  4. 2026-07-30 Musk appealed to the Ninth Circuit.

Sources

  1. Elon Musk Charged With Securities Fraud for Misleading Tweets (Press Release 2018-219)U.S. Securities and Exchange Commission, 2018-09-27, primary source
  2. Complaint, SEC v. Elon Musk, No. 1:18-cv-08865 (S.D.N.Y.)U.S. Securities and Exchange Commission, 2018-09-27, primary source
  3. Elon Musk Settles SEC Fraud Charges; Tesla Charged With and Resolves Securities Law Charge (Press Release 2018-226)U.S. Securities and Exchange Commission, 2018-09-29, primary source
  4. Tesla, Inc. 2026 Proxy Statement (Form DEF 14A)Tesla, Inc. / U.S. SEC EDGAR, 2026-10, primary source
  5. Elon Musk found not liable in trial over 2018 Tesla take-private tweets (Reuters)Reuters, via Kitco, 2023-02-03, secondary source
  6. 9th Circ. Says No New Trial For Tesla Investors' SuitLaw360, 2024-11-06, secondary source
  7. Court upholds verdict clearing Elon Musk and Tesla over 2018 'funding secured' tweetDrive Tesla Canada (citing Reuters), 2024-11, secondary source
  8. In re Tesla, Inc. Derivative Litigation, Delaware Supreme Court opinion (per curiam)Delaware Supreme Court (copy hosted by Bernstein Litowitz Berger & Grossmann), 2025-12-19, primary source
  9. Delaware Supreme Court Reverses the Remedy Applied by the Court of Chancery in In re Tesla, Inc. Derivative LitigationAkin Gump Strauss Hauer & Feld, 2025-12, secondary source
  10. Delaware Reinstates Musk's Pay Package, Slashes $345 Million Fee AwardGibson, Dunn & Crutcher, 2025-12, secondary source
  11. Tesla (Tornetta v. Musk) case pageBernstein Litowitz Berger & Grossmann (plaintiff's counsel), secondary source
  12. Tesla, Inc. Form 10-K/A for fiscal year 2025 (Amendment No. 1)Tesla, Inc. / U.S. SEC EDGAR, 2026, primary source
  13. Litigation Release No. 26219: SEC v. Elon MuskU.S. Securities and Exchange Commission, 2025-01-14, primary source
  14. Litigation Release No. 26548: Elon Musk and Elon Musk Revocable Trust Dated July 22, 2003U.S. Securities and Exchange Commission, 2026-05-04, primary source
  15. US judge approves Elon Musk settlement with SEC despite misgivings, 'red flags' (Reuters)Reuters, via The Star, 2026-07-08, secondary source
  16. U.S. Judge Allows SEC-Musk Deal Despite 'Significant Misgivings' (Bloomberg)Bloomberg, via CPA Practice Advisor, 2026-07-09, secondary source
  17. Judge approves Elon Musk's SEC settlement over Twitter disclosures despite 'red flags'Fortune, 2026-07-09, secondary source
  18. US jury finds Elon Musk misled Twitter shareholders (AFP)AFP, via Eyewitness News, 2026-03-21, secondary source
  19. Elon Musk misled Twitter investors ahead of acquisition, jury saysFox Business, 2026-03-20, secondary source

Change history

  • 2026-10-26 Record published.

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