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Musk's Tesla share sale questioned by The Wall Street Journal

Published 01/20/2023, 09:53 AM
Updated 01/20/2023, 10:01 AM
© Reuters Musk's Tesla (TSLA) share sale questioned by The Wall Street Journal

© Reuters Musk's Tesla (TSLA) share sale questioned by The Wall Street Journal

By Sam Boughedda

The Wall Street Journal alleged in a report Friday that Elon Musk sold Tesla (NASDAQ:TSLA) shares before the electric vehicle giant released its weaker-than-expected deliveries report.

Tesla reported its fourth quarter deliveries on January 2, which came in below the company's most recent forecast, resulting in Tesla's share price sliding the next day.

The WSJ said in its report that it raises a question about whether Musk knew about the slowdown before he sold the shares.

They state that according to a regulatory filing, Musk sold almost 22 million shares between December 12 and 14 at an average price of approximately $163 a share. They closed the session on January 3 at $108.10, although they have since climbed to over $128 per share.

The report explains that, in general, SEC rules prohibit corporate insiders from trading their company's securities while being aware of material nonpublic information.

However, while it is unknown if Musk knew of the delivery decline, the WSJ quoted Donald Langevoort, a securities-law professor at Georgetown University, as saying it is suspicious.

Tesla shares are up more than 1% Friday.

Latest comments

I have always been very upfront about my view of Elon Musk, he has acts are like a magician. While he tweets something, underneath he executes a transaction that is the opposite of his tweet. No need to list the tweets, the public knows of them. I had a 40% of my investment portfolio in $TSLA, but after witnessing his acts in public, I decided to take a loss and unload most of my position, some of the stocks were sold due to margin call; however, I still held some position. Having said that, Elson Musk should not be exempt from any wrong doing; although, he might think so. So if he is guilty, then he needs to face the music. Unfortunately, the retail investors will have to take more losses due to his behavior, once proven guilty. Why? Simply, the stock will plunge again.
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