Elon Musk sold 22 million Tesla shares for $3.6 billion days before a weak report was released, after which the company’s Nasdaq listings fell 12% in one day, The WSJ has found. If Musk had sold the shares after his stock price plunged, he would have earned $1.2 billion less.
In December 2022, Tesla CEO Elon Musk sold 22 million Tesla shares, raising $3.6 billion for them. On January 2, the electric car maker released a quarterly report that disappointed investors: In it, Tesla announced a 40% increase in shipments, even though it had expected a 50% increase.
The day after the report was published, Tesla shares on the Nasdaq stock exchange fell 12% in a trading session. According to the newspaper, the value of the package sold by Musk before the stock crash fell by $1.2 billion.
James Cox, a professor at Duke University in the United States, said in a commentary for the newspaper that what happened should be of interest to the SEC (United States Securities and Exchange Commission). Important in this situation is that before making a decision, Musk knew what the market expected from Tesla, and he was aware of the results of the company’s work, the expert noted.
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