Elon Musk’s Attempt to Secure US Supreme Court Review of SEC Deal Over Tesla Tweets Falls Short

The US Supreme Court has rejected Elon Musk’s appeal over a settlement with the federal securities regulator, requiring him to seek approval before commenting publicly on Tesla. This decision means that Musk, one of the world’s richest individuals, must have a Tesla lawyer review his posts about the auto maker on X, the social media platform formerly known as Twitter.

The case stems from a 2018 incident when Musk shocked Wall Street with a tweet stating he was considering taking Tesla private at $420 with secured funding. The US Securities and Exchange Commission accused him of securities fraud, leading to a settlement where Musk stepped down as Tesla’s chair for three years and paid a $20 million fine.

Musk petitioned the Supreme Court to review a lower-court ruling that rejected his claims that the SEC provision violated the First Amendment. He argued that the government cannot coerce parties to waive constitutional rights.

Despite the settlement, Musk has continued to taunt the SEC on X, referring to them as the “short seller Enrichment Commission.” The agency is also investigating whether Musk’s Twitter stock purchases violated securities laws.

The SEC has emphasized that Musk voluntarily agreed to seek approval from Tesla’s lawyers before tweeting about certain Tesla-related topics as part of the settlement. The agency believes Musk forfeited the claim that the conditions were unconstitutional.

This ongoing legal battle between Musk and the SEC highlights the complexities of regulating public statements by high-profile individuals in the business world.