Elon Musk — WikiCC

You Shouldn’t Be Shocked That Musk Is Being Sued For Insider Trading

He has a history.

Will Lockett
Published in
4 min readJun 5, 2024

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Musk has a track record of being a bit wild when it comes to his investments. Anyone who paid attention to his acquisition of Twitter will know this well. He skirts the law and tries to game the system. Sometimes, he comes out on top, and other times, he gets caught red-handed. Well, it seems like Musk just got caught. Michael Perry, a Tesla shareholder, is suing Musk for insider trading. According to Michael, Musk sold $7.5 billion worth of Tesla stock right before the company’s fourth-quarter numbers were made public on Jan 2, 2023, which detailed how badly Tesla had missed their sales and delivery target, plummeting its stock price. As such, Michael claims Musk “improperly benefited” by $3 billion in insider trading profits, robbing Tesla shareholders. But should we really be surprised?

Let’s start by defining insider trading. The U.S. Securities and Exchange Commission (SEC) defines illegal insider trading as “”the buying or selling of a security, in breach of a fiduciary duty or other relationship of trust and confidence, on the basis of material, non-public information about the security. As you can imagine, CEOs of large companies with shares in said company can effortlessly partake in insider trading.” Sometimes, even accidentally. As such, these CEOs, company…

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Will Lockett
Predict

Independent journalist covering global politics, climate change and technology. Get articles early at www.planetearthandbeyond.co