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Thank you, Leo. This can work.

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Krent today and experience banking that

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keeps up with you. Welcome back

0:55

to the Elon Musk podcast. This

0:57

is a show where we discuss

0:59

the critical crossroads that shape SpaceX,

1:01

Tesla, X, the boring company, and

1:03

Neuralink. And I'm your host, Will

1:05

Walden. The US Supreme

1:07

Court recently decided not to consider a

1:10

challenge from Elon Musk against

1:12

an agreement he made with the

1:14

Securities and Exchange Commission, the SEC,

1:16

which mandates that his social media

1:18

posts be pre-approved by a legal

1:20

expert if they pertain to his company, Tesla.

1:24

This decision effectively upholds earlier rulings

1:26

from lower courts and sustains stipulations

1:28

of the 2018 settlement

1:31

that followed Musk's controversial tweets

1:33

about potentially taking Tesla private.

1:36

Musk had appealed to the Supreme Court following

1:39

a decision by the Second U.S. Circuit Court

1:41

of Appeals in New York, which

1:43

sided with the SEC, and is

1:45

contention centered on what he refers

1:48

to as the Twitter sitter provision,

1:50

arguing that it unjustly limits his

1:52

freedom of expression online, specifically regarding

1:55

matters related to Tesla. The

1:57

provisions that Musk disputed were put in

2:00

place after his tweet in August of

2:02

2018 where he claimed to have secured

2:04

the funding needed to take Tesla private

2:06

at $420 per share. Now these tweets significantly

2:11

impacted Tesla's stock price and led

2:13

to temporary trading halts prompting an

2:15

SEC investigation into their accuracy and

2:17

compliance with security laws. Now the

2:20

SEC alleged that must statements were

2:23

materially false and misleading thus violating

2:25

security laws designed to prevent fraud

2:27

and protect investors. As a result

2:30

Musk and Tesla faced civil

2:32

securities actions culminating in a

2:34

settlement that included civil fines

2:36

and the contested pre-approval requirement

2:38

for Musk's relevant tweets. The

2:40

settlement terms required that

2:42

any public communications by Musk that could

2:44

affect Tesla stock must first

2:46

be reviewed and approved by a qualified

2:49

attorney from Tesla. This was

2:51

intended to prevent any dissemination of

2:53

potentially misleading information that could affect

2:55

the market and Tesla shareholders. Now

2:58

despite agreeing to the terms of the settlement

3:00

in 2018 Musk later pushed back against them

3:03

arguing that they imposed on unconstitutional restriction

3:05

of his speech. His lawyers

3:07

maintained that the SEC had exceeded

3:09

its authority by opposing conditions that

3:11

were not only restrictive but also

3:14

unrelated to the original misconduct. Lower

3:16

courts had consistently dismissed Musk's arguments ruling

3:18

that he had voluntarily agreed to the

3:20

terms of the settlement. The

3:22

courts highlighted that by signing the agreement

3:25

Musk had waived any rights to challenge

3:27

the pre-approval provisions on the basis of

3:29

free speech. Now the Supreme

3:31

Court's refusal to hear Musk's appeal

3:33

leaves a lower course decision intact

3:35

confirming that the provisions of the

3:37

2018 settlement will remain unforceable. This

3:39

decision shows that the court stands

3:42

on the enforceability of settlement agreements,

3:44

particularly those involving regulatory oversight and

3:47

public interest. Legal

3:49

experts suggest the outcome of this

3:51

case reflects the judiciary's deferrance to

3:54

settlement agreements that are entered into

3:56

voluntarily, especially those that involve regulatory

3:58

agencies like the S.C.E. which

4:01

are tasked with maintaining market

4:03

integrity and investor confidence. Additionally,

4:05

the case has broader implications for corporate

4:07

executives and their use of social media,

4:10

showing that the legal responsibilities

4:12

that come with disseminating information

4:15

that has the potential to impact

4:17

markets and also investor decisions. Now

4:20

Musk's acquisition of Twitter, now renamed

4:22

X in 2022,

4:24

further complicates his personal entanglement with

4:26

issues of corporate governance and communication,

4:29

given his active presence and substantial following

4:31

on the platform. And the ongoing

4:33

scrutiny of Musk's tweets by the SEC, including

4:35

a 2011 inquiry into

4:37

whether he violated the sentiment by

4:40

failing to obtain pre-approval for a

4:42

tweet about selling Tesla stock, illustrates

4:45

the continuous regulatory oversight he's under

4:47

as a result of his online

4:49

activities. And supporters of

4:52

Musk argue that the SEC's

4:54

actions reflect an overly aggressive

4:56

regulatory approach that stifles innovation

4:58

and free speech in the

5:00

corporate realm. They claim that

5:02

such stringent controls on communications

5:04

are detrimental to the dynamic

5:06

environment needed for technological and

5:08

corporate advancement. Critics, however,

5:10

applaud the SEC's firm stance as

5:13

necessary to ensure transparency and

5:15

honesty in corporate communications, particularly

5:17

in an era where social

5:20

media can instantly alter market

5:22

landscapes and influence investor behavior.

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by state. Restrictions apply. Seasight for

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details. The for male with

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the of a supreme court's decision. Not

6:28

to intervene may serve as

6:30

a cautionary tale for other

6:32

executives about the legal in

6:34

the financial responsibilities and repercussions

6:36

of the statements of social

6:38

media especially those capable of

6:40

influencing property value and of

6:42

distractions. Law. So signals a reinforcement

6:44

of the pounder. ease. Of Corporate

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Communications. Especially. For figures

6:49

like Elon Musk, who statements have

6:51

the power to cause significant market

6:53

movements and attract intense public and

6:56

regulatory scrutiny, Rom. Must has

6:58

not publicly commented on the supreme court's decision.

7:00

The. Resolution of this battle makes

7:02

an important chapter. In. The

7:04

ongoing debate over the intersection of

7:06

free speech rights and regulatory obligations

7:09

in the digital Age. Hey.

7:11

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7:13

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