Helena Lyng Blak
1 week ago

Elon Musk Accused of Insider Trading … Again

Tesla investor accuses the billionaire of insider trading to the volume of $7.5 billion.
Defocused glitch portrait of Elon Musk and his reflection. — Photo by KLYONA
Defocused glitch portrait of Elon Musk and his reflection. — Photo by KLYONA

In 2022, the United States Securities and Exchange Commission (SEC) opened a probe into Elon Musk, to investigate whether the billionaire and his brother, Kimbal Musk, had violated insider trading rules, when the latter sold $108 million of shares in Tesla one day before the former sent the EV maker’s stock plummeting after he asked in a poll on then-Twitter if he should sell 10% of his stake in the company.

Then, in a 2023 lawsuit, Musk was accused of market manipulation and insider trading by dogecoin investors. The suit alleged that Musk had purposefully boosted the coin’s value through “publicity stunts,” such as changing Twitter’s logo to the dogecoin Shiba Inu, only to then sell $124 million worth of the cryptocurrency.

This time, however, the call is coming from inside the house. 

On Thursday, May 30, 2024, Tesla shareholder Michael Perry filed a lawsuit in the state of Delaware, alleging that Musk sold more than $7.5 billion worth of Tesla stock in November and December of 2022 in an insider trading move, Bloomberg reports.

The suit alleges that Musk was in possession of and motivated by non-public information about the company’s fourth-quarter deliveries, when he sold the shares. 

According to Forbes, Musk allegedly profited approximately $3 billion from his sales. Had he waited until the non-public information was made public, the suit claims he would have made less than 55% of what he ultimately realized. 

After the allegations were made public, Tesla’s stock took a slight dip on Friday, May 31, bounced back in the early hours of trading on Monday, June 3, before taking yet another moderate dip in the afternoon.

Disclaimer

The information provided by this Site is for general informational purposes only. All information on the Site is provided in good faith, however we make no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability or completeness of any information on the Site.

More News

5 hours ago Federal Reserve Sees Progress on Inflation, Adjusts Rate Cut Expectations The Federal Reserve has adjusted its forecast for rate cuts this year, citing persistent inflation despite recent progress. High borrowing costs are expected to linger, impacting consumers and the broader economy.
6 hours ago Bitcoin Holds Steady as Fed Maintains Interest Rates: A Sign of Economic Caution In a cautious move, the U.S. Federal Reserve opted to keep interest rates unchanged, causing Bitcoin to hold its ground. Read more about the economic implications and market responses here: "The Committee judges that the risks to achieving its employment and inflation goals have moved toward better balance over the past year."
9 hours ago High-Stakes Showdown: Tesla Shareholders Decide on Elon Musk’s $56B Pay Package Tesla shareholders are set to cast their votes on Elon Musk's controversial $56 billion compensation package, a decision that could have far-reaching consequences for the company.
12 hours ago USDMXN: A Golden Opportunity USDMXN: A Golden Opportunity Amid Mexican Election Sell-Off, Says Steno Research Analyst
1 day ago EU's New Tariffs on Chinese EVs Hit Tesla and BYD Stocks! Tesla (TSLA) and BYD (1211) Stocks Plummet After EU Tariff Announcement
1 day ago Macro Mondays: Escaping the TRAP of Sideways Markets Andreas Steno, Mikkel Rosenvold And Mads Eberhardt talk macro and crypto
1 day ago EU launches trade war with China In a bold move that has sent ripples through global markets, the European Union has effectively launched a trade war against China. This decision, announced just three days after the European Parliament elections, raises significant questions about the influence and timing of the EU’s legislative body.
1 day ago July Bloodbath: Metals Set for Major Crash? Brace yourselves for a tumultuous July in the metals market! Industry experts are sounding the alarm as cluster risks in metals like gold, silver, and copper threaten a significant downturn. Here's why July could spell disaster for metal investors.
1 day ago 5 Stories To Invest in for Emerging Markets 5 Stories that might interest you if you're into investing in Emerging Markets