Elon Musk has requested the U.S. Supreme Court to nullify an arrangement between himself and Tesla that was previously settled with the SEC. The agreement necessitated Musk to have all his tweets about Tesla reviewed and approved by a "Twitter sitter" ahead of publication. Musk's lawyers argued that the agreement put an unconstitutional constraint on him and is a contradiction to his right to free speech.
Elon Musk, CEO of Tesla, has petitioned the U.S. Supreme Court to overturn a settlement that he and the carmaker agreed upon with the Securities and Exchange Commission. That settlement required any of Musk's tweets related to Tesla to have the help of a lawyer or "Twitter sitter" for approval.Musk's lawyers argue that this provision of the agreement infringes upon his free speech rights and that he was forced to agree to conditions that are unconstitutional.The SEC charged Musk after tweets he posted in 2018 indicated he had secured funding to take Tesla private at $420 per share, and had secured "investor support" for the deal. This subsequently caused a halt in trading of Tesla shares and they stayed volatile in the following weeks.In April 2019, the two parties revised the agreement and the SEC monitored Musk and Tesla to ensure their compliance with the conditions.Musk's lawyers also stated that the settlement "restricts Mr. Musk's speech even when truthful and accurate" and that it applies to speech unrelated to the SEC's conduct towards Musk. They added that it has a chilling effect since there is always the risk of imprisonment or fines in the event that the speech is not approved.Musk purchased Twitter in 2022 and renamed it X this year, where he serves as chairman and chief technology officer. According to Columbia Law School professor Eric Talley, who specializes in corporate and business law, this is "a swing for the fences" move and will require four of the nine justices to agree to hear the case.Talley also noted that the "unconstitutional conditions" doctrine usually applies when the government awards benefits, like a tax break for not criticizing the Supreme Court. However, he states that this case is different since it is related to charges being dropped in exchange for a settlement agreement.Tesla investors have sued the company and Musk over his aforementioned "funding secured" tweets and their effect on the stock value. A San Francisco-based federal jury concluded in February that Musk and Tesla were not liable in a class action securities fraud trial. The shareholders have since filed for an appeal to the 9th Circuit.
Elon Musk sees himself as essential in the competition to dominate artificial intelligence.
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