Tesla Appeals Labor Board Ruling Ordering Elon Musk To Delete Anti-Union Tweet

Tesla is fighting an order from the U.S. National Labor Relations Board (NLRB) that would force a change in messaging over union issues at the company.

What Happened: Tesla Inc (NASDAQ: TSLA) has appealed a decision made last month by the NLRB, which ordered CEO Elon Musk to delete what the board considered to be an anti-union tweet, Reuters reported.

The NLRB also said Tesla violated U.S. labor laws when the company fired union activist Richard Ortiz in 2018 and directed Tesla to offer to him.

In a petition on Friday, Tesla requested that the New Orleans-based U.S. Court of Appeals review the NLRB's decision.

The company further asked the court to review the NLRB's decision to order Musk to delete the 2018 tweet.

In that tweet, Musk wrote, "Nothing stopping Tesla team at our car plant from voting union. Could do so tmrw if they wanted. But why pay union dues & give up stock options for nothing? Our safety record is 2X better than when plant was UAW & everybody already gets healthcare."

Why It Matters: Tesla has said its factories should remain union-free, and Musk has repeatedly clashed with workers at the Fremont factory for their pro-union stance.

Musk being ordered to delete his tweet is also significant, as Tesla counts tweets by its CEO to be official communication from the company.

Last month's NLRB order also said the Tesla must address the "unlawful' tweet at all of its sites publicly, including by putting up a statement that says, "WE WILL take appropriate steps to ensure Musk complies with our directive."

The board also said Tesla must rescind 2017 regulations that prohibit employees from distributing unionization information or pamphlets without prior approval from the company.