According to a Reuters report on February 2, Tesla shareholders have filed a lawsuit alleging insider trading when Tesla CEO Elon Musk sold more than $7.5 billion in stock by the end of 2022.
Shareholders, including Michael Perry, claimed in a lawsuit filed last week in Delaware Chancery Court that “Tesla’s stock price plummeted immediately after the company’s quarterly results were released on January 2, 2023.” They added, “Musk unfairly profited from insider trading at the time.” They explained that Musk’s knowledge of the poor quarterly results constituted insider trading. Just before the results were announced, a large amount of stock was sold at the end of 2022.
Tesla has been facing a series of setbacks recently, including internal strife over Musk’s compensation package.
In such a situation, Reuters predicted that Musk’s suspicion of insider trading could significantly impact the stock price.