The United States Supreme Court has rejected an appeal from Tesla CEO Elon Musk, declining to review a settlement agreement between Musk and the Securities and Exchange Commission (SEC). The settlement, reached in 2018, requires Musk to have certain social media posts about Tesla pre-approved by a company lawyer.
The SEC had accused Musk of securities fraud following a 2018 tweet where he stated that he had acquired funding to take Tesla private. The tweet caused a spike in Tesla’s stock price, but Musk did not provide any proof or file paperwork with the SEC. The tweet was ruled to be “false and misleading,” resulting in Musk being ordered to step down as Tesla’s chairman and pay a $20 million fine.
In his appeal, Musk argued that the pre-approval requirement was an unconstitutional infringement on his right to free speech. However, the Supreme Court declined to hear the case without providing any comment. This decision leaves the settlement agreement in place and means that Musk will continue to be subject to the pre-approval requirement for his social media posts about Tesla.
