Musk accused of selling $7.5 billion of Tesla stock before releasing disappointing sales data that plunged the share price to two-year low - eviltoast
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 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.
  • Cyborganism@lemmy.ca
    874·
    5 months ago

    This is bullshit. My EV ETF is not doing well and I’m losing my investment while this jagoff gets to sell his stocks ahead of the announcements and runs away with the money? Fuck that shit.

    Shareholders should fucking sue if the government ain’t gonna arrest him for insider trading.

    • kora@lemmy.blahaj.zone
      201·
      5 months ago

      I wish I knew money enough to actually understand your comment, but here we are, both hating Elon and wanting him dealt with. Its beautiful really.

      • Cyborganism@lemmy.ca
        241·
        5 months ago

        An ETF is an investment fund made up of stocks from different companies. A fund based on electric vehicle market could include Tesla, Chevrolet, Toyota, Ford, Kia and various other companies building EV parts like BASF or Northvolt for batteries or chargers.

        The fund could be composed of, say, 30% Tesla, 10% Chevrolet, 10% Kia, 5% Ford, etc.

        You can invest in the fund by purchasing parts, which then give you a return based on how many parts you bought and the performance of the stocks in the fund.

        Does that make sense?

    • r00ty@kbin.life
      10·
      5 months ago

      If you’re using the ETF as a long term investment and you believe EVs are key to our future then you shouldn’t worry about this too much (unless the ETF is made up of mostly TSLA in which case I’d not be too happy).

      You’ve not lost money until you take it out of your investment.

      • Cyborganism@lemmy.ca
        21·
        5 months ago

        True.

        And Tesla is in the top 10 stocks with the highest percentage in the ETF. But doesn’t hold as much importance as it used to it seems.

        I just went and looked again and now the #1 is Nvidia. It used to be Tesla. I guess whoever is managing the fund was good enough to see what was going on and modified the investments.

    • tal@lemmy.todayEnglish
      82·
      5 months ago

      I believe that normally companies have restricted time windows for trading for people who may have access to information about the company.

      kagis

      https://corpgov.law.harvard.edu/2021/06/02/determinants-of-insider-trading-windows/

      At most publicly traded firms, an insider trading policy (ITP) establishes a pre-specified open trading window each quarter when insiders are allowed to trade, which dictates a corresponding “blackout” period in which they are prohibited from doing so. The typical trading window begins 2-3 trading days after the previous quarter’s earnings release and ends approximately 2-3 weeks prior to the end of the next fiscal quarter, resulting in an allowed trading window of about six weeks. These restrictions on insider trading activity potentially provide both protection from legal or regulatory action as well as liquidity and cost of capital benefits (e.g., Fishman and Hagerty, 1992). Although there is substantial variation in the length and timing of these trading windows, little is known about the factors boards consider when determining these constraints. Furthermore, in addition to these pre-specified trading windows and corresponding blackout periods, firms may impose event-specific trading restrictions on insiders (e.g., due to ongoing merger or acquisition negotiations). These “ad hoc blackout windows,” which are undisclosed to the public, are largely unexplored in prior literature.

      • Cyborganism@lemmy.ca
        5·
        5 months ago

        Normally, yes. Working in a couple of big corporations, we would be told when we can’t trade because of internal announcements. We could potentially be accused of insider trading. Unless this read a timed trade that was already scheduled ahead of time.