Oct 26, V7N- A divided U.S. appeals court ruled on Friday that the National Labor Relations Board (NLRB) overstepped its authority by ordering Tesla CEO Elon Musk to delete a tweet from 2018. This tweet stated that employees at the electric vehicle manufacturer would lose stock options if they chose to unionize. The 5th U.S. Circuit Court of Appeals, based in New Orleans, voted 9-8 to overturn the NLRB's 2021 ruling, determining that Musk's tweet was protected free speech under the First Amendment of the U.S. Constitution.

In the court's unsigned opinion, the majority stated, "Deleting the speech of private citizens on topics of public concern is not a remedy traditionally countenanced by American law." This decision did not address whether the tweet itself violated the National Labor Relations Act but emphasized the constitutional protection of free speech.

The court also instructed the NLRB to reconsider its earlier decision regarding the reinstatement of a pro-union employee who had been fired. U.S. Circuit Judge James Dennis dissented, joined by seven other judges, including all of the court's Democratic appointees, criticizing the ruling as "light on law and facts."

Both Tesla and the NLRB did not respond to requests for comment following the ruling. The case originated prior to Musk's acquisition of Twitter (now known as X) in 2022 for $44 billion. During a union organizing effort by the United Auto Workers 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 that the tweet was not a threat but rather a reflection of the fact that unionized workers at other auto manufacturers typically do not receive stock options.

In a related matter, Musk's rocket company, SpaceX, is currently suing the NLRB, claiming that its in-house enforcement procedures are unconstitutional.

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