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Musk accused of improperly selling $7.5 billion in Tesla stock before weak sales report that crashed its price

·1 min

Tesla Faces Shareholder Lawsuit over Elon Musk’s Stock Sale

Tesla and its board are facing a shareholder suit over Elon Musk’s sale of $7.5 billion worth of Tesla shares in late 2022. Musk sold 41.5 million shares between November and December, just before a January 2023 sales report that caused the stock price to plummet. The suit alleges that Musk profited from his exploitation of material and adverse inside information. The plaintiff is requesting that Musk return the profits from the stock sale to the company, along with attorney fees and other costs. This development comes as Tesla seeks shareholder approval to return stock options to Musk.