By Mike Spector, Rachael Levy, Marisa Taylor, and Chris Prentice

NEW YORK/WASHINGTON (Reuters)

Last month, during the final days of the Biden administration, the SEC set a tight deadline for Elon Musk to settle or face civil charges over alleged securities violations related to his $44 billion Twitter takeover in 2022.

Musk announced the demand on social media, expressing dismay towards SEC Chair Gary Gensler and questioning the motivations behind the ultimatum. An SEC spokesperson declined to comment, and the White House did not respond.

Musk has often criticized government oversight, claiming to be a victim of political harassment. With Donald Trump taking office soon, questions arise regarding the fate of ongoing federal investigations into Musk’s businesses, including Tesla and SpaceX.

Musk is currently facing multiple inquiries, including allegations of securities violations, safety concerns regarding Tesla’s driving systems, and various compliance issues at SpaceX and Neuralink. Musk has claimed he has not sought favors from Trump pre-election.

The Trump administration’s appointments might influence the ongoing investigations, with some officials asserting that Trump ally prosecutors could choose not to pursue Musk’s cases aggressively. While some legal experts express doubts about political interference, they note the potential for ongoing investigations to either proceed or stall based on evidence.

Following the election, Musk has positioned himself closely with Trump, boasting about his influence and suggesting ways to support his businesses. He was appointed to co-lead a new “Department of Government Efficiency,” although the scope of this position is unclear.

Musk has been vocal against regulation, particularly by the NHTSA, and asserts Tesla’s defense against investigations has been that it informed drivers about self-driving technology. Investigations are underway into various claims, including one into Tesla’s representations about vehicle range.

SpaceX faces minimal regulatory scrutiny as the government contracts much of its space work. Musk has criticized fines imposed by the EPA and FAA for alleged violations. The possibility of scrutiny over Musk’s connections with foreign leaders, including Russian President Vladimir Putin, may diminish under Trump’s presidency, especially with favorable appointments in agencies relevant to Musk’s interests.

Musk’s relations and investigations reflect a shift in regulatory oversight, particularly amidst the political transition back to a Trump administration.