Tesla CEO Elon Musk Takes On US SEC In Supreme Court Battle

Rupam Roy
December 8, 2023 Updated May 28, 2025
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Elon Musk US inflation Galaxy CEO Mike Novogratz

In a bold move, Tesla CEO Elon Musk is urging the U.S. Supreme Court to overturn a settlement that mandates a “Twitter sitter” to review his Tesla-related posts. Filed on Dec. 7, Musk’s attorneys claim this provision violates his free speech rights, arguing that he was forced into accepting “unconstitutional conditions” by the U.S. Securities and Exchange Commission (SEC).

Notably, the petition aims to undo the agreement, highlighting Musk’s objection to the oversight of his social media communications related to the electric vehicle (EV) firm.

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Elon Musk’s Battle for X Freedom

Elon Musk, the CEO of Tesla, has escalated his feud with the SEC, seeking relief from a settlement that demands pre-approval for his Tesla-related posts on the X platform. Notably, Musk’s legal team contends that this “Twitter sitter” provision violates his constitutional rights, deeming the conditions unconstitutional.

In a petition filed on December 7, Musk’s lawyers argued that the settlement not only restricts Musk’s speech on matters unrelated to securities laws but also subjects him to perpetual threats of contempt, fines, or imprisonment. According to them, even truthful and accurate statements face censorship under these conditions.

Meanwhile, Musk’s frustration with the SEC was candidly expressed when he claimed, “I was forced to concede to the SEC unlawfully, those bastards.” In addition, the Tesla CEO said in an interview that the banks threatened to withdraw support for Tesla if Musk didn’t settle, a move he addressed as “sticking a gun to your child’s head.”

Also Read: Fidelity Spot Bitcoin ETF Added To Active ETF And Pre-Launch List

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What’s Next For This Supreme Court Battle?

With a circuit court already dismissing his appeal, Musk now turns to the U.S. Supreme Court, seeking a reversal of the settlement. The legal maneuver is described as a “swing for the fences” by legal experts. Notably, to secure a hearing, Musk needs four out of the nine Supreme Court justices to agree, marking a high-stakes gamble.

According to a CNBC report, Columbia Law School professor Eric Talley weighs in, highlighting the uniqueness of Musk’s argument, which challenges the “unconstitutional conditions” doctrine. Notably, this doctrine typically arises when the government dispenses public benefits, raising questions about its applicability in this context.

Despite the legal hurdles, Musk’s move to challenge the SEC’s regulatory constraints on his social media activity showcases a determination to defend what he sees as an infringement on his free speech rights, setting the stage for a gripping legal battle that could reshape the boundaries of corporate communication.

Notably, this isn’t the first encounter between X founder Elon Musk and the U.S. SEC, marking a recurring conflict. Previously, Elon Musk and Mark Cuban have collaborated, submitting a joint amicus brief to the Supreme Court. In their brief, they contest the Securities and Exchange Commission’s (SEC) practice of conducting internal trials without involving juries.

In addition, Elon Musk came under scrutiny from the SEC, for Musk’s acquisition of the social media giant Twitter in 2022, which has been rebranded as X. The SEC examined whether Musk breached federal securities laws through his stock acquisitions and the statements and filings he made in connection with the deal.

Also Read: Crypto Prices Today, Bitcoin Takes a Dip As Pepe Coin and BONK Rise

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Rupam is a seasoned professional with three years of experience in the financial market, where he has developed a reputation as a meticulous research analyst and insightful journalist. He thrives on exploring the dynamic nuances of the financial landscape. Currently serving as a sub-editor at Coingape, Rupam's expertise extends beyond conventional boundaries. His role involves breaking stories, analyzing AI-related developments, providing real-time updates on the crypto market, and presenting insightful economic news. Rupam's career is characterized by a deep passion for unraveling the complexities of finance and delivering impactful stories that resonate with a diverse audience.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.