Even if legal, what Musk is doing is incredibly sleazy. The employees agreed to work on certain terms. Then he demands they agree to different terms. Seems sketchy, but I think I know what they'd argue.
It's just a really creepy thing. I don't think I've really seen or heard of it elsewhere. You work for me, so sign here for different terms, or you lose your job.
I do know that it's probably legal in most jurisdictions for CEOs to just dictate new work conditions, after hiring (though it shouldn't). However, it doesn't normally come in the form of a button you must push to agree with him, "or else". Usually you have a meeting where you explain the plans moving forward... it seems companies that are scared of being sued do this.
I can't imagine this is a legally prudent move. We should enact laws that specifically target CEOs that act like cartoon characters. Of course, that would just let them be more secretive or quiet.