Akshata Sharma
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NEW DELHI: A Tesla shareholder, on Thursday, sued Elon Musk engaged in insider trading by selling over $7.5 billion worth of shares in the electric car manufacturer in late 2022.
Shareholder Michael Perry filed the lawsuit in Delaware Chancery Court, contending that Musk sold the shares before the public disclosure of potentially disappointing production and delivery figures, resulting in an estimated $3 billion in insider profits for Musk.
"Musk exploited his position at Tesla, and he breached his fiduciary duties to Tesla," the lawsuit said, asking the court to direct Musk to return the profits made from the trades.
According to the lawsuit, Musk sold the shares on multiple occasions between November and December 2022. The complaint also accuses Tesla's directors of failing in their fiduciary duty by permitting Musk to execute the sales.
As of the report, neither Musk nor Tesla had responded to requests for comment from Reuters.
Perry alleges that Musk, who had previously touted strong demand for Tesla vehicles in 2022, became aware of lower-than-anticipated figures in mid-November, utilizing his access to real-time data to sell his shares before the information became public. Following the revelation of vehicle price discounts and the subsequent release of figures in January, Tesla's stock experienced a significant decline.
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