Elon Musk’s SEC Tussle Reaches New Heights As Supreme Court Weighs In

In a legal showdown that could redefine the boundaries of free speech for high-profile figures, the U.S. Supreme Court has taken a keen interest in Elon Musk’s bid to nullify an agreement with the Securities and Exchange Commission (SEC). Meanwhile, the U.S. Supreme Court has recently decided to seek the Biden administration’s response to Musk’s appeal, adding a new layer of complexity to the high-stakes clash between the entrepreneur and the regulatory body.

Notably, this development marks a pivotal moment in Musk’s ongoing battle over the screening of his social media posts about Tesla Inc.

Supreme Court Seeks Regulatory Response On Elon Musk Vs. SEC Tussle

The US Supreme Court has asked the Biden administration to weigh in on Elon Musk’s appeal, indicating to invalidate an SEC agreement regarding the pre-screening of his Tesla-related social media posts. Notably, Musk contends that this pact infringes upon his constitutional right to free speech.

Meanwhile, the justices have directed Solicitor General Elizabeth Prelogar to respond by January 22, Bloomberg reported. Although this move doesn’t necessarily indicate the court’s collective stance but could signal the interest of a single justice.

For context, earlier this month, Elon Musk took a bold step, requesting the U.S. Supreme Court to overturn a settlement requiring a ‘Twitter sitter’ to oversee his Tesla-related posts. Filed on Dec. 7, Musk’s legal team argues that this provision violates his free speech rights, contending that he was compelled to accept ‘unconstitutional conditions’ imposed by the U.S. Securities and Exchange Commission (SEC).

The petition sought to annul the agreement, emphasizing Musk’s objection to the supervision of his social media communications concerning the electric vehicle (EV) company.

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From “Funding Secured” Tweet to Constitutional Challenge

Elon Musk’s clash with the SEC traces back to his 2018 tweet claiming he had “funding secured” to take Tesla private, a move that significantly impacted the company’s stock. In response, the SEC filed a lawsuit, alleging misinformation.

Meanwhile, Elon Musk and Tesla settled, agreeing to pay $20 million each and subjecting Musk’s Tesla-related posts to pre-screening by an in-house lawyer. Musk’s recent Supreme Court appeal labels this arrangement as a “quintessential prior restraint,” challenging its legality under the law.

Notably, Elon Musk has also criticized the regulatory burden on U.S. financial markets, highlighting pressures faced by companies like Tesla, according to another Bloomberg report. Musk discussed the impact of shareholder pressure on efficiency and the influence of a handful of stock pickers due to passive investing in a conversation with Cathie Wood on X Spaces.

In addition, he shared insights into SpaceX’s private status enabling more risk-taking, and acknowledged the benefit of Tesla staying public for a consistent capital flow.

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Rupam, a seasoned professional with 3 years in the financial market, has honed his skills as a meticulous research analyst and insightful journalist. He finds joy in exploring the dynamic nuances of the financial landscape. Currently working as a sub-editor and crypto journalist at Coingape, Rupam’s expertise goes beyond conventional boundaries. His contributions encompass breaking stories, delving into AI-related developments, providing real-time crypto market updates, and presenting insightful economic news. Rupam’s journey is marked by a passion for unraveling the intricacies of finance and delivering impactful stories that resonate with a diverse audience.

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