Tesla leader Elon Musk has been accused of selling more than $7. 5 billion worth of Tesla stock in late 2022 as part of insider trading, according to a lawsuit filed Thursday by a Tesla shareholder, who accused Musk of exploiting his position and failing to fulfill his fiduciary duties. .
The lawsuit, filed through Tesla investor Michael Perry, alleges that Musk had private data that Tesla failed to meet fourth-quarter deliveries and production when he sold about $7,530,113,926 of the company’s inventory in November and December 2022.
Had Musk waited to continue the sale after the public announcement of the failed delivery, sales would have netted him less than 55% of what he achieved, according to the lawsuit.
Musk allegedly benefited from about $3 billion from sales in November and December, according to the lawsuit, which cites Tesla’s final Jan. 3, 2023, value of $108. 10 per share.
Bloomberg, which first reported on the lawsuit, noted that Perry had filed for a trial to get Musk back the profit he made from the alleged insider trading.
Tesla and Musk’s lawyer did not respond to Forbes’ request for comment.
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We estimate Musk’s net worth to be $209 billion, making him the richest user in the world. This week, the Tesla boss took the more sensible place of LVMH chief Bernard Arnault after announcing that his synthetic intelligence startup xAI had raised $6 billion in a series. Investment Round B.
Musk sold 19. 5 million Tesla shares worth about $3. 95 billion in November 2022, shortly after completing his $44 billion acquisition of Twitter. He followed up with another sell-off in December, selling shares of his company worth about $3. 6 billion. The tech billionaire, who said that same year that he had “no additional TSLA sales planned after today,” sold a total value of about $22. 9 billion in inventory in 2022 after agreeing to buy Twitter, according to CNBC, which cited money research firm VerityData. Perry’s lawsuit is the latest investigation into Musk’s stock market activity. A federal investigation into his acquisition of Twitter is in full swing, and Musk agreed this week to testify as part of the Securities and Exchange Commission’s investigation into the $44 billion acquisition. Musk sued through regulators last year for allegedly refusing to testify about the acquisition.
Elon Musk to Testify in Federal Investigation into Twitter Takeover, After Federal Government Sues Him (Forbes)
SEC sues Elon Musk for refusing to testify about Twitter acquisition (Forbes)
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