Elon Musk Was Sued by a Tesla Investor

The information of publicly traded companies and publicly traded companies is available to the public and investors make transactions based on this information. Investing using company confidential information or company secrets is called “insider trading” and is prohibited. Tesla investor michael perryfiled a lawsuit against Elon Musk, claiming that he carried out such a trade.

According to Perry’s claim, Elon Musk in 2022 He claimed that Tesla realized it wouldn’t be able to meet its fourth-quarter targets for vehicle sales and sold billions of dollars’ worth of shares as a result. This situation caused losses to other investors.

$7.5 billion in sales

According to the indictment submitted to the court, Musk sold Tesla shares worth 7 billion 530 million 113 thousand 926 dollars at that time. Afterwards, the investor wondered if Musk made the same sale after the quarterly figures were announced. 55% less He claimed he would make money.

Regarding this issue yet neither Perry nor Musk There was no statement from their representatives. The lawsuit documents also referenced Musk’s statements at an investor meeting in 2023. In this call, Musk said that instant data can be found on daily vehicle orders and production. The case file also states that Tesla at that time in production and delivery logistics It was highlighted that a change made possible that Musk had access to important and non-public information about Tesla’s fourth quarter production and delivery figures.

Why is insider trading a crime?

Under normal circumstances, markets have some accepted standards. Symmetry of information is important in public transactions and purchases. Information symmetry is an understanding that everyone has equal access to information. When employees or owners of companies act with information that others do not know, this hinders equality of opportunity in the market. Therefore, it is forbidden to transact with inside information. Therefore, according to the law, such transactions are considered information abuse. Although it varies from country to country, the punishment for this criminal act can be imprisonment or a fine.