Tesla shareholder sues Musk for insider trading $7.5 billion, stock price dropped

From Investing.com: 2024-05-31 20:50:30

A Tesla shareholder filed a lawsuit against CEO Elon Musk, accusing him of insider trading by selling $7.5 billion in shares before disappointing production numbers were public. Share price dropped after Q4 numbers were released. Musk allegedly profited $3 billion. Musk and Tesla have not commented on the lawsuit.

The lawsuit claims Musk sold shares in November and December 2022 before public release of lower-than-expected numbers. Tesla’s stock plummeted after news of vehicle price discounts sparked demand concerns. Musk allegedly would have gotten 55% less profit if he waited to sell after the news. Musk faces unrest from shareholders regarding his pay package.

Musk faces a regulatory probe for potential breach of federal securities laws in 2022 regarding his investment in Twitter, now X. Musk accuses the U.S. SEC of harassment. A separate lawsuit accuses Musk of defrauding X investors. Musk’s ongoing feud with the SEC dates back to 2018 over a tweet about taking Tesla private.



Read more at Investing.com: Tesla shareholder sues Musk for alleged $7.5 billion insider trading By Reuters