Tesla Defending Elon Musk’s Tweet Threatening to Remove Stock Options
Tesla is taking its fight to defend Elon Musk’s tweet that threatened to remove employee stock options if they decide to unionize all the way to the Fifth Circuit court of appeal.
This ongoing battle stems from the UAW’s unsuccessful attempt to unionize workers at Tesla’s Fremont factory and other locations in 2017-2019.
During this push, Tesla fought back against the union’s efforts with tactics that were considered illegal. The National Labor Relation Board (NLRB) ruled in favor of the union, finding that Tesla violated labor laws by preventing the distribution of union materials, terminating employees due to union support, and posting a specific tweet threatening to remove stock options for employees who unionize.
The NLRB ordered Tesla to cease and desist from these activities, including removing the tweet, and the ruling was upheld by the court. However, the Fifth Circuit court has granted a reconsideration and will be hearing from both sides.
Bloomberg Law summarized Tesla’s case as relying on the fact that Musk wasn’t directly threatening Tesla employees and only responding to a non-employee on Twitter. The company also appears to argue that the ruling was politically motivated.
Kara Rollins, an attorney with the New Civil Liberties Alliance, which is backing Tesla, commented, “This is really about fundamental First Amendment interests in relation to the National Labor Relations Act, which has some limited speech controls. This case looks at that provision of the NLRA and the First Amendment through the lens of social media.”
The case is currently being considered by the court, but it could be a while before we get a ruling. This new review comes amid Tesla’s preparation to fight back against another unionization effort from UAW after their win against the Big Three in Michigan.
Electrek’s Take
At the fear of stating the obvious: I am not a First Amendment lawyer. So, take my comments with a grain of salt. In my opinion, the tweet is more than Elon exercising his right to comment on unions. He is stating that employees would forfeit their stock options if they decide to unionize. He is saying that as if it’s obvious that it’s either union or stock options, while there’s no reason why it couldn’t be both. It does sound like a threat, which could affect how Tesla employees approach the possibility of unionizing. This situation doesn’t seem to contribute to a positive outcome either way.