Appeal Court Ruling on Musk's Tweet

By Nate Raymond

A divided U.S. appeals court ruled that the National Labor Relations Board (NLRB) overstepped by ordering Tesla CEO Elon Musk to delete a 2018 tweet. The tweet suggested that employees would lose stock options if they unionized, which the NLRB deemed an unlawful threat.

The ruling from the 5th U.S. Circuit Court of Appeals, on a 9-8 vote, determined Musk's tweet was protected free speech under the First Amendment. The majority opinion emphasized that deleting such speech is not a traditional remedy in American law.

The court did not address whether the tweet violated the National Labor Relations Act and directed the NLRB to review its decision to reinstate a pro-union employee who was fired.

U.S. Circuit Judge James Dennis argued in dissent that the ruling was lacking in legal and factual basis. Representatives for Tesla and the NLRB did not comment on the decision.

This case precedes Musk's acquisition of Twitter in 2022. During a union organizing campaign at Tesla's Fremont plant, Musk tweeted that there was nothing stopping employees from voting for a union but questioned the need to pay dues and give up stock options. Tesla contended the tweet was not a threat, while a prior three-judge panel disagreed.

Additionally, Musk's other company, SpaceX, is suing the NLRB over its in-house enforcement processes, claiming they are unconstitutional.