Elon Musk and Tesla Inc (NASDAQ:TSLA) have fired a broadside at America's main financial regulator by accusing them of trying to ‘chill’ free speech.
The allegations came from a lawyer's letter to US District Judge Alison Nathan, who presided over a 2018 Securities and Exchange Commission (SEC) settlement related to a Musk tweet about taking Tesla private.
Tesla’s counsel, Alex Spiro, wrote: "The SEC seems to be targeting Mr Musk and Tesla for unrelenting investigation largely because Mr Musk remains an outspoken critic of the government.
“The SEC's outsized efforts seem calculated to chill his exercise of First Amendment rights. Enough is enough."
It disclosed earlier this month that it had received a subpoena from the SEC about its compliance with the 2018 settlement, in the latest of the company’s run-in with the SEC over Musk’s tweets and announcements
In 2018, Musk tweeted: “Am considering taking Tesla private at $420. Funding secured”. The announcement sent the company's price up.
The SEC said Musk exaggerated when he stated funding was close, leading to Musk stepping down as chairman, and both Tesla and Musk being forced to pay US$20mln in fines.
In a May 2020 tweet, Musk said: “Tesla stock price too high IMO". This knocked US$14bn off the company’s market capitalisation. Tesla was handed a subpoena off the back of the tweet.
Musk and Tesla are also facing legal trouble from accident claimants, South Korean antitrust regulators and animal cruelty activists.
Shares in Tesla closed down 5.1% to US$876.35 yesterday.