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 his 2018 tweet. This tweet indicated that Tesla employees would lose stock options if they unionized.

The 5th U.S. Circuit Court of Appeals, based in New Orleans, voted 9-8 to reject the NLRB's 2021 order, stating the tweet was protected free speech under the First Amendment of the U.S. Constitution.

In its unsigned opinion, the court remarked, "Deleting the speech of private citizens on topics of public concern is not a remedy traditionally countenanced by American law." This led to the court overturning the NLRB's 2021 decision, without deciding if the tweet indeed violated the National Labor Relations Act.

Additionally, the court instructed the NLRB to reconsider its directive for Tesla to reinstate a pro-union employee who was terminated. Judge James Dennis dissenting, condemned the ruling as "light on law and facts," joining other judges appointed by Democratic presidents.

Both Tesla and the NLRB did not respond to requests for comment.

This case arose before Musk's acquisition of Twitter (now X) in 2022 for $44 billion, a platform he frequently uses. During the United Auto Workers union's organizing campaign at Tesla's Fremont, California plant, Musk tweeted: "Nothing stopping Tesla team at our car plant from voting union… But why pay union dues & give up stock options for nothing?"

Tesla contended the tweet was not a threat, but rather highlighted that union workers at other auto companies lacked stock options. A prior ruling by a three-judge panel in March 2023 disagreed, prompting the full appeals court to rehear the case.

Separately, Musk's SpaceX is suing the NLRB over what it claims are unconstitutional enforcement proceedings.