Elon Musk Appeals Judge’s Refusal To End Supervision Of His Tesla Tweets
ForbesDec 24, 2021
The Facts
In a court brief on Tuesday, Elon Musk's lawyer alleged that the US Securities and Exchange Commission (SEC) has been violating the Tesla CEO's freedom of speech by continuing to enforce a 2018 securities fraud settlement against him.
The dispute stems from a 2018 tweet in which Musk said he had the “funding secured” to take Tesla private, resulting in the company's stock soaring. But the funding was reportedly not secured and the company remained public; Musk signed an agreement with the SEC in which he and Tesla agreed to pay $20M for the misleading tweet.
The Spin
Narrative A
More oversight of Musk is good for Tesla and protects shareholders, potential investors, and the public from being misled and defrauded by his careless tweets. Musk’s settlement with the SEC was the best option for him - otherwise, he could have been stripped of his role as Tesla's CEO.
Narrative B
With the SEC paying such close attention to Musk, one can't help but wonder why the Commission doesn't handle more pressing issues, like the increasing number of publicly traded "blank-check" companies. The SEC is hypocritically targeting a high-profile and influential figure and assaulting freedom of speech.
