The letter on behalf of Musk demands to cancel the consent decree as part of the settlement agreement that Musk signed with the Commission in 2019. According to the same order, any of his tweets about data related to Tesla must be approved by an attorney familiar with the securities laws. The goal is to prevent him from tweeting like this one from 2018, in which he announced that he had a funding source for the purchase of all Tesla shares in order to delist it from the stock market and make it private The tweet boosted Tesla’s stock, but after the deal fell through the stock plummeted, and Musk was sued by both investors and the SEC for misrepresentation.
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Earlier this month, he won over shareholders, when a Texas court ruled that he was acquitted of fraud charges. Following this, his lawyers wrote to the Commission that the settlement reached with Musk in her parallel lawsuit should also reflect this ruling. “The public interest in avoiding unconstitutional compromises easily outweighs the SEC’s apparent interest in the consent order,” they wrote, and even accused the Commission of “obtaining (the order) through gimmicks, which turned a legitimate compromise into an all-out extortion scheme.”