Supreme Court Rejects Elon Musk’s Appeal Over Social Media Posts Approval Requirement

The Supreme Court has rejected an appeal from Elon Musk over a settlement with securities regulators that requires him to get approval in advance of some social media posts related to Tesla, the electric vehicle company he leads. Musk had complained that the requirement amounted to “prior restraint” on his speech in violation of the First Amendment.

The case stems from tweets Musk posted on Twitter in 2018 claiming he had secured funding to take Tesla private. The tweets caused the company’s share price to jump and led to a temporary halt in trading. The settlement with the Securities and Exchange Commission included a requirement that his posts on Twitter be approved first by a Tesla attorney, as well as civil fines for Musk and Tesla over the misleading tweets.

Despite Musk’s claims that funding was secured, Tesla remains a public company. The SEC’s initial enforcement action alleged that Musk’s tweets about going private violated antifraud provisions of securities laws. The agency began investigating whether Musk violated the settlement in 2021 when he did not get approval before asking followers on Twitter if he should sell 10% of his Tesla stock.

In a surprising turn of events, Musk acquired Twitter in 2022, adding another layer of complexity to the situation. The rejection of his appeal by the Supreme Court underscores the importance of regulatory compliance and transparency in the world of social media and finance.