Lawyers for Musk have told the SEC that the social media company is in violation of multiple provisions of the merger agreement and that Musk is walking away from the deal.
Following the news, shares of Telsa went up by a percentage point.
Three months of speculation began when Musk disclosed his ownership of 9.2% of the company's shares, and a day after sources told the Washington Post that the deal was in serious jeopardy over the issue of bot accounts on the platform.
Musk's representatives did not reply to Insider's request for comment.
Insider was told just before the announcement that the contract would be enforced.
The merger agreement requires that information be shared with Mr. Musk in order to complete the transaction. The merger agreement will be enforced at the agreed price.
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