Tesla CEO Elon Musk Takes On US SEC In Supreme Court Battle

In a bold move, Tesla CEO Elon Musk is urging the U.S. Supreme Court to overturn a settlement that mandates a “Twitter sitter” to review his Tesla-related posts. Filed on Dec. 7, Musk’s attorneys claim this provision violates his free speech rights, arguing that he was forced into accepting “unconstitutional conditions” by the U.S. Securities and Exchange Commission (SEC).

Notably, the petition aims to undo the agreement, highlighting Musk’s objection to the oversight of his social media communications related to the electric vehicle (EV) firm.

Elon Musk’s Battle for X Freedom

Elon Musk, the CEO of Tesla, has escalated his feud with the SEC, seeking relief from a settlement that demands pre-approval for his Tesla-related posts on the X platform. Notably, Musk’s legal team contends that this “Twitter sitter” provision violates his constitutional rights, deeming the conditions unconstitutional.

In a petition filed on December 7, Musk’s lawyers argued that the settlement not only restricts Musk’s speech on matters unrelated to securities laws but also subjects him to perpetual threats of contempt, fines, or imprisonment. According to them, even truthful and accurate statements face censorship under these conditions.

Meanwhile, Musk’s frustration with the SEC was candidly expressed when he claimed, “I was forced to concede to the SEC unlawfully, those bastards.” In addition, the Tesla CEO said in an interview that the banks threatened to withdraw support for Tesla if Musk didn’t settle, a move he addressed as “sticking a gun to your child’s head.”

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What’s Next For This Supreme Court Battle?

With a circuit court already dismissing his appeal, Musk now turns to the U.S. Supreme Court, seeking a reversal of the settlement. The legal maneuver is described as a “swing for the fences” by legal experts. Notably, to secure a hearing, Musk needs four out of the nine Supreme Court justices to agree, marking a high-stakes gamble.

According to a CNBC report, Columbia Law School professor Eric Talley weighs in, highlighting the uniqueness of Musk’s argument, which challenges the “unconstitutional conditions” doctrine. Notably, this doctrine typically arises when the government dispenses public benefits, raising questions about its applicability in this context.

Despite the legal hurdles, Musk’s move to challenge the SEC’s regulatory constraints on his social media activity showcases a determination to defend what he sees as an infringement on his free speech rights, setting the stage for a gripping legal battle that could reshape the boundaries of corporate communication.

Notably, this isn’t the first encounter between X founder Elon Musk and the U.S. SEC, marking a recurring conflict. Previously, Elon Musk and Mark Cuban have collaborated, submitting a joint amicus brief to the Supreme Court. In their brief, they contest the Securities and Exchange Commission’s (SEC) practice of conducting internal trials without involving juries.

In addition, Elon Musk came under scrutiny from the SEC, for Musk’s acquisition of the social media giant Twitter in 2022, which has been rebranded as X. The SEC examined whether Musk breached federal securities laws through his stock acquisitions and the statements and filings he made in connection with the deal.

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