Hold onto your seats, folks! 🚗💨
In a shocking twist, a Tesla shareholder has taken legal action against CEO Elon Musk, accusing him of insider trading involving over $7.5 billion worth of shares! 🤯 The lawsuit, filed on Thursday in Delaware Chancery Court, claims that Musk sold a massive chunk of Tesla stock in late 2022, right before some potentially disappointing production and delivery numbers became public.
Shareholder Michael Perry alleges that Musk benefited improperly by about $3 billion in insider profits. 💰 He asserts that Musk used his privileged access to real-time data to sell shares before the lower-than-expected numbers were announced on January 2, 2023. After the news broke, Tesla's share price took a significant hit. 📉
\"Musk exploited his position at Tesla and breached his fiduciary duties,\" the lawsuit states, calling for the billionaire to return the profits from these trades.
Tesla Directors Under Fire 🔥
The lawsuit doesn't stop at Musk. It also accuses Tesla's directors of breaching their fiduciary duty by allowing these stock sales to happen. 😲
What's the Big Deal? 🤔
Perry claims that if Musk had waited to sell his shares until after the adverse news was released, he would have made less than 55% of what he actually earned from his November and December 2022 sales.
This legal move adds another chapter to Musk's growing list of courtroom dramas. 🎭 As of now, neither Musk nor Tesla has responded to requests for comment. 🤐
More Trouble on the Horizon? 🌩️
This lawsuit comes as Musk faces opposition from some Tesla shareholders over his whopping $56 billion pay package. They're set to vote on June 13 on whether to ratify it, following a Delaware judge's decision to void the package back in January due to concerns over how it was approved.
Meanwhile, Musk is also under regulatory scrutiny over his acquisition of the social media platform formerly known as Twitter (now X). 🐦🔜❌ The U.S. Securities and Exchange Commission is investigating whether he violated federal securities laws during the purchase.
The Road Ahead 🛣️
It's a turbulent time for Elon Musk and Tesla. Will this lawsuit impact the electric vehicle giant's trajectory? Or is it just a speed bump on Musk's ambitious journey? Only time will tell! ⏳ Stay tuned for more updates! 📡
Reference(s):
Tesla shareholder sues Musk for alleged $7.5 billion insider trading
cgtn.com
