Musk is accused of insider trading in shares

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A Tesla shareholder has filed a lawsuit against Elon Musk, accusing him of insider trading when he sold more than $7.5 billion of the company’s stock in late 2022.

Reuters writes about it.

It said Musk was accused of selling the stock before potentially disappointing production and delivery figures were released.

Shareholder Michael Perry, in a lawsuit filed in Delaware Court of Chancery, said Tesla’s stock price plummeted after the company’s fourth-quarter results were released on Jan. 2, 2023, and alleged that Musk “improperly benefited” from insider trading. revenues in the amount of about 3 billion dollars.

The lawsuit also accuses Tesla directors of breaching their fiduciary duties by allowing Musk to sell the stock.

In the lawsuit, Perry alleges that Musk, who said in 2022 that demand for Tesla cars was “excellent,” learned of the lower-than-expected numbers in mid-November with access to real-time data and sold his shares before , as information became public domain.

After news of auto discounts fueled concerns about demand and the January numbers, Tesla shares fell.

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