The Twitter owner still must run posts by an attorney after making claims about taking Tesla private in 2018.
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An appeals court held up a ruling on Monday that Elon Musk cannot back out of a 2018 settlement with securities regulators requiring attorney approval of his tweets about Tesla, after the billionaire suggested he had secured funding to make Tesla private, wreaking havoc for shareholders.Key Facts
Musk challenged the terms of the 2018 settlement last year that required him to have an attorney sign off on his tweets about Tesla, arguing the order was a violation of free speech, but a Manhattan federal court struck down the appeal Monday.
The Securities and Exchange Commission investigated Musk and Tesla for securities fraud in 2018 after Musk tweeted he had “funding secured” and investor support confirmed to take Tesla private for $420 per share—a deal to take Tesla private never came to fruition, and the company’s share price fluctuated for weeks following the tweet.
