Divided Court Rules in Favor of Musk: Tesla Union Tweeter Controversy

A federal appeals court ruled in favor of Tesla CEO Elon Musk, overturning a previous order that mandated the deletion of a 2018 tweet deemed a threat to union efforts. The court found the tweet protected under free speech, sending the case back for further NLRB review.

A sharply divided federal appeals court has ruled in favor of Tesla CEO Elon Musk, overturning a previous mandate for him to delete a controversial 2018 tweet. The tweet, posted during union organization efforts by the United Auto Workers at Tesla's Fremont plant, was deemed a threat to employee stock options.

The U.S. Court of Appeals for the 5th Circuit determined the tweet was protected under free speech, splitting 9-8 in Musk's favor. This decision contradicts an earlier ruling by a three-judge panel which sided with the National Labor Relations Board (NLRB). The NLRB had earlier ordered Tesla to reinstate a fired employee back pay, alleging an illegal threat in the tweet.

In his dissent, Judge James Dennis argued that Musk's tweet fell under coercive employer speech, unprotected by the First Amendment. The case will now return to the NLRB for further proceedings, with no indication yet if an appeal will be made to the U.S. Supreme Court.

(With inputs from agencies.)