Court Rules Tesla's Musk Tweet as Protected Free Speech
In a recent ruling on Friday, the 5th U.S. Circuit Court of Appeals found that the National Labor Relations Board (NLRB) exceeded its authority by ordering Tesla CEO Elon Musk to delete a tweet he posted in 2018. The tweet implied that Tesla employees would lose stock options if they chose to unionize. The court, in a 9-8 vote, determined that the tweet was protected under the First Amendment, which guarantees freedom of speech, and therefore should not be deleted.
The unsigned majority opinion emphasized the importance of free speech and stated that ordering the removal of a private citizen's speech on matters of public concern is not a permissible remedy under traditional American law. This stance led to the overturning of the NLRB's 2021 decision that classified the tweet as an illegal threat. The majority justices, appointed by Republican presidents, did not address whether Musk's tweet violated the National Labor Relations Act, focusing instead on the constitutional issue.
The appeals court also instructed the NLRB to reconsider its decision requiring the reinstatement of a union-supporting employee who was terminated by Tesla. Judge James Dennis, who wrote the dissenting opinion along with seven other judges, criticized the majority ruling as lacking legal and factual support. All of these dissenting judges were appointed by Democratic presidents.
The case began before Musk's purchase of Twitter (now known as X) for $44 billion in 2022. Known for his active presence on social media, Musk tweeted during a unionization effort at Tesla's Fremont, California factory, questioning the value of paying union dues and giving up stock options.
Tesla defended the tweet, arguing that it was not a threat but a reflection of the fact that unionized workers at other car companies do not receive stock options. A three-judge panel of the 5th Circuit did not align with Tesla's stance in March 2023 but later decided for the full court to revisit the case.
In a separate development, Musk's rocket company SpaceX is engaged in a legal battle with the NLRB, claiming that the board’s internal enforcement procedures are unconstitutional.