The Tesla CEO faces claims he pocketed $3 billion in ill-gotten gains in late 2022 after learning Q4 vehicle sales would not deliver the 'epic end of year' he promised investors.

cross-posted from: https://programming.dev/post/15086231

  • Elon Musk accused of illegally selling $7.5 billion in Tesla stock in Q4 2022.
  • Lawsuit alleges Musk and board violated fiduciary duties by selling shares ahead of disappointing vehicle sales data.
  • Shareholder seeks disgorgement of $3 billion in illegal gains and damages from directors for reckless behavior.
  • Neato@ttrpg.networkEnglish
    38·
    6 months ago

    I don’t understand why people who have insider knowledge are ever allowed to sell or buy that stock. Seems made for corruption.

    • TVgog56789@lemy.lolOPMEnglish
      71·
      6 months ago

      You can’t stop promoters from trading their own stock but there are strict rules for them.

      They cannot make a trade based on insider information before it’s Public.

      • Neato@ttrpg.networkEnglish
        31·
        6 months ago

        Well clearly they can. They’ll always know things before they happen that will affect the stock price.

        • TVgog56789@lemy.lolOPMEnglish
          1·
          6 months ago

          They have to eventually make that information public and SEC will track the large buy/sell order taken place before the information is public.

          So it’s pretty quick and easy to catch them if someone wants to.