French judicial authorities are reportedly investigating Elon Musk over potential market manipulation concerning his companies, X and xAI. The Paris public prosecutor’s office transmitted a report on March 17 to the U.S. Securities and Exchange Commission (SEC) and the U.S. Department of Justice.
The signalement comes amid suspicions that the billionaire deliberately orchestrated the recent controversy involving Grok deepfakes. Prosecutors reportedly believe this was done with the intent to artificially inflate the valuation of X and xAI, anticipating their planned stock market launch in June 2026.
Elon Musk’s reaction to the investigation was reportedly sharp, with him dismissing the Parisian prosecutors by calling them “mentally deficient.”
