In a recent development reported by Bloomberg, the US Supreme Court has declined Elon Musk’s appeal to overturn a settlement with the Securities and Exchange Commission (SEC). This settlement mandates Musk to obtain preapproval from a lawyer for certain tweets concerning Tesla.
The origins of this decision trace back to a consent decree signed by Musk and the SEC in 2018. This agreement followed Musk’s tweets regarding taking Tesla private, wherein he falsely asserted having “funding secured.” Since then, Musk has been endeavoring to void the decree, which requires legal review of tweets potentially affecting Tesla before dissemination.
Despite arguments from Musk’s legal team asserting a violation of his free speech rights, a federal appeals court dismissed his appeal in 2023. Today, the Supreme Court upheld this ruling by declining to review the case.
Of particular scrutiny by the SEC are three of Musk’s tweets. The first is the controversial “funding secured” tweet from 2018, which precipitated the consent decree, a $40 million fine, and Musk stepping down as Tesla’s chairman. Additionally, other tweets are being examined, including one containing misleading information about Tesla’s vehicle production and another suggesting Musk sell 10 percent of his Tesla stock.
Despite ongoing investigations, the identity of Musk’s purported “Twitter sitter” remains undisclosed. Neither Tesla nor Bloomberg’s investigative efforts have uncovered concrete information regarding this individual.
