Biden Administration Urges Supreme Court to Dismiss Musk’s Tesla Appeal in SEC Dispute Over ‘Taking Tesla Private’

Biden Administration Urges Supreme Court to Dismiss Musk’s Tesla Appeal in SEC Dispute Over ‘Taking Tesla Private’


“Benzinga’s Top Stocks to Buy Today”

There’s only two mistakes you can make when investing. One is not investing at all. The next is buying the wrong stocks. Get an edge on which stocks to buy with the Benzinga Insider Report, our best weekly stock report sent right to your inbox. Act fast and secure our top stock picks at an unbelievable discount! Claim This Limited $0.99 Offer NOW!


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

What Happened: The administration on Friday recommended that the Supreme Court not entertain Musk’s appeal, reported Reuters. The appeal was filed by Musk in December after a lower court upheld his consent decree with the SEC.

ENTER TO WIN $500 IN STOCK OR CRYPTO

Enter your email and you’ll also get Benzinga’s ultimate morning update AND a free $30 gift card and more!

In 2018, Musk posted on X, then Twitter, that he had secured funding to take his EV company private, a move the SEC deemed as defrauding investors.

Am considering taking Tesla private at $420. Funding secured.

— Elon Musk (@elonmusk) August 7, 2018

As per Musk’s settlement with the SEC, he and Tesla each paid $20 million in fines and agreed to allow a Tesla lawyer to approve some of his posts on Twitter. Musk has termed the consent decree a muzzle on his right to free speech.

The Justice Department, in its filing, defended the settlement terms as a means to prevent future false or misleading statements by Musk. The 2nd U.S. Circuit Court of Appeals in Manhattan previously rejected Musk’s argument that the SEC was using the decree to conduct intrusive investigations into his Twitter use.

Musk’s lawyers have argued that the SEC had no right to impose a “gag rule” as a condition of the settlement, claiming it violated the First Amendment’s constraints on governmental limits on free speech.

This is, however, not Musk’s first run-in with the SEC. Last month a California federal court ordered Musk to testify again as part of an SEC investigation into Musk’s takeover of Twitter in 2022. Musk refused to attend an interview previously in September, following which the regulator sued him in October.

Price Action: Tesla shares closed down 1.15% at $170.83 on Friday. The stock is down 31.2% year-to-date, according to data from Benzinga Pro.

Check out more of Benzinga’s Future Of Mobility coverage by following this link.

Read More: ‘Lmao:’ Elon Musk Looks Back In Laughter At GM Chief Mary Barra’s 2021 Pledge To ‘Absolutely’ Catch Tesla In US EV Sales

Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.


“Benzinga’s Top Stocks to Buy Today”

There’s only two mistakes you can make when investing. One is not investing at all. The next is buying the wrong stocks. Get an edge on which stocks to buy with the Benzinga Insider Report, our best weekly stock report sent right to your inbox. Act fast and secure our top stock picks at an unbelievable discount! Claim This Limited $0.99 Offer NOW!


© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Source Reference

Latest stories