Elon Musk Appeals Judge’s Refusal To End Supervision Of His Tesla Tweets

Topline

Elon Musk on Wednesday appealed a federal judge’s refusal to end an agreement between the Tesla CEO and the Securities and Exchange Commission, which requires oversight of his Twitter posts about the electric-vehicle company that stemmed from a 2018 tweet in which Musk said he was considering a private Tesla buyout.

Key Facts

Musk will ask the 2nd U.S. Circuit Court of Appeals to overturn U.S. District Judge Lewis Liman’s April decision to leave the consent decree with the SEC in place, according to court documents.

Liman ruled the agreement would remain in place, rejecting Musk’s arguments that the decree infringed on his First Amendment rights and should be terminated because he was coerced into the settlement, as he believed it would end the SEC’s “unrelenting investigation.”

Liman wrote in his April ruling Musk could not end the agreement by “bemoaning that he felt like he had to agree to it at the time but now—once the specter of the litigation is a distant memory and his company has become, in his estimation, all but invincible—wishes that he had not.”

The SEC declined to comment on the appeal to Forbes.

Key Background

The SEC sued Musk in 2018, alleging he made “false and misleading” statements to investors, after he tweeted in August 2018 he was considering a private buyout of Tesla for $420 a share. The deal never came to light, and Musk had to step down as Tesla’s chairman for at least three years as part of an agreement with the SEC. Musk and Tesla both had to pay $20 million fines, and Tesla had to implement a pre-approval process to monitor Musk’s public comments regarding the company. As part of the agreement, Musk and Tesla did not admit or deny any wrongdoing.

Tangent

A lawyer for Musk in February accused the SEC of engaging in a “calculated effort to chill” his right to free speech in its oversight of communications with shareholders, alleging the SEC was “harassing” Musk because he is an “outspoken critic” of the government.

Big Number

$210.1 billion. That’s Musk’s net worth, according to Forbes’ real-time wealth tracker, making him the richest person on the planet.

Further Reading

Judge Rejects Elon Musk’s Bid To End Supervision Of Tesla Tweets: Billionaire’s Arguments Are ‘Meritless’ And ‘Ironic’ (Forbes)

Elon Musk, Tesla Accuse SEC Of ‘Calculated Effort’ To Chill His Right To Free Speech (Forbes)

Elon Musk Tweets Cost Him Tesla Chairmanship And (Maybe) A Submissive Board (Forbes)