Tesla investor sues Elon Musk for alleged insider trading

Tesla investor sues Elon Muskclaiming he engaged in insider trading in 2022.

The plaintiff, Michael Perry, said Musk knew Tesla was going to disappoint the market with its fourth-quarter results for fiscal 2023. The complaint says Musk exaggerated investors' expectations, noting that the Tesla CEO told investors investors in a previous earnings report. said the fourth quarter would be “a record” and that “we expect to sell every car we make for as far as we can see.” At the same time, according to the lawsuit, Musk had access to real-time data contradicting his statements.

Before markets could understand that Tesla would fail to meet Musk's publicly announced targets for the company's fourth-quarter results, the plaintiff said, Musk sold a large portion of his own shares in the company, worth $7.5 million.

“Having sold these shares before the non-public information in his possession could be publicly disclosed and affect the Company's stock price, E. Musk improperly profited from this breach of fiduciary duty,” says the Tesla shareholder's complaint.

The lawsuit, filed Thursday in Delaware Chancery Court, suggests that Musk sold Tesla stock to refinance his shares in Twitter, the social media platform. he bought for 44 billion dollars in 2022 and renamed X. It also names members of Tesla's board of directors as defendants for allegedly “breaching their fiduciary duties by allowing Defendant Musk to circumvent Tesla's insider trading policy.”

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