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.
  • NeatoEnglish
    38•4 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.

    • @RedditWandererEnglish
      10•4 months ago

      Normally they will hand off all the stock trading to a third party so there is no conflict.

    • @[email protected]OPMEnglish
      6•4 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.

      • NeatoEnglish
        2•4 months ago

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

        • @[email protected]OPMEnglish
          1•4 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.

  • @SuckMyWangEnglish
    21•4 months ago

    So prison right? Like for everyone else when they do illegal stuff