HomeMarket NewsMusk’s Supreme Court Appeal in Tesla SEC Dispute Gets Biden Administration's Cold...

Musk’s Supreme Court Appeal in Tesla SEC Dispute Gets Biden Administration’s Cold Shoulder

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Paris France June 16 2023 Elon Musk 44

The Biden administration has reportedly advised the U.S. Supreme Court to dismiss Tesla Inc TSLA CEO Elon Musk‘s appeal against the Securities and Exchange Commission.

The Biden Administration’s Stand: On Friday, the Biden administration recommended that the Supreme Court steer clear of Musk’s appeal, reported Reuters. This move comes after a lower court affirmed Musk’s consent decree with the SEC last December.

Back in 2018, Musk stirred the pot on X, formerly known as Twitter, by announcing he had funding secured to take Tesla private. The SEC saw this as an attempt to hoodwink investors. This tussle between Musk and the SEC has been brewing for quite some time, reminiscent of a long-drawn poker game.

After sealing a settlement with the SEC, both Musk and Tesla shelled out $20 million each in fines and agreed to let a Tesla lawyer screen Musk’s tweets. Musk has kicked against this settlement, describing it as a gag on his freedom of speech.

The Justice Department, in its filing, defended the settlement as a move to prevent Musk from making false or misleading statements in the future. The 2nd U.S. Circuit Court of Appeals in Manhattan had previously shot down Musk’s argument that the SEC was snooping into his tweets through the decree.

Musk’s legal team has contended that the SEC overstepped by imposing a “gag rule” as part of the settlement, claiming it infringed upon his First Amendment rights.

This isn’t the first time Musk has found himself locking horns with the SEC. Just last month, a California federal court ordered Musk to testify afresh in an SEC probe into his Twitter takeover in 2022. Musk had previously dodged an interview in September, leading to a lawsuit by the SEC in October.

Stock Update: Tesla’s stock dipped by 1.15% to close at $170.83 on Friday. Year-to-date, the stock has tumbled by 31.2%, as indicated by Benzinga Pro data.

For more insights into the future of mobility, check out Benzinga’s in-depth coverage here.

More Stories: Remembering the fun banter: Elon Musk reflects amusingly on GM Chief Mary Barra’s ambitious 2021 plan to outshine Tesla in US EV sales

Legal Disclaimer: Portions of this article were crafted with assistance from Benzinga Neuro and were scrutinized and published by Benzinga editors.

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