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Tesla CEO accused of insider trading, selling $7.5 billion of stock before releasing disappointing sales data that plunged the share price to two-year low

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.

Elon Musk faces allegations that he illegally sold $7.5 billion worth of equity in Tesla in the fourth quarter of 2022, knowing that the business would disappoint after promising investors an “epic end of year.” Core to Perry’s argument is establishing motive through the assertions that Musk knew, first, that he still needed to liquidate stock at as high a price as possible to cover a loan for purchasing Twitter; and second, that fourth-quarter sales trended well behind his bullish October 2022 expectations ( Fortune even predicted as much at the time). Perry’s lawsuit argued that it was reasonable to infer he did so to avoid losing money, having promised nothing short of an “ epic end of year ” only weeks earlier.

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