- Elon Musk accused of illegally selling $7.5 billion in Tesla stock in Q4 2022.
- Lawsuit alleges Musk and board violated fiduciary duties by selling shares ahead of disappointing vehicle sales data.
- Shareholder seeks disgorgement of $3 billion in illegal gains and damages from directors for reckless behavior.
Wouldn’t that volume for sale appearing on the market decrease the price in and of itself?
Man someone’s job is literally just poring over thousands of pictures of Musk to find the worst ones
While “find the worst photo of them for the article” is definitely a thing that happens, are you sure it’s happening here? He just looks like a normal person in a normal pose. It’s what people look like without makeup and studio lighting.
Probably the opposite. There’s probably someone whose job it is to find and/or take flattering pictures of that asshole
What a joyous year if we could get Trump and Elon in jail this year… They could be roomies!
Neither of them are going to prison. Trump’s judge explicitly said as much during his 10th contempt citation, and Musk has been pissing on the leg of the SEC for the last five years straight with no consequences.
So you’re saying they’re never getting their comeuppance?
Not under a Biden government, no
Please no, we don’t need them plotting together in jail
Would be a pretty funny “prison break esque” movie though.
The key to escape is Donald’s tiny hands can reach things other prisoners hands are to big for.
And Elmo creates the perfect diversion by convincing every other prisoner to invest in prison coins, only to pump and dump em causing a riot.
Martha Stewart this motherfucker.
So… i vaguelly knew about her so did some searching
she served five months in federal prison for fraud and was released in March 2005. There was speculation that the incident would effectively end her media empire,[2] but in 2005 Stewart began a comeback campaign[3] and her company returned to profitability in 2006.[4] Stewart rejoined the board of directors of Martha Stewart Living Omnimedia in 2011[5] and became chairwoman of her namesake company again in 2012
Its pretty mild isn’t it?
And she got street cred, and hangs out with snoop dog now lol.
Oh wow! Was that her with the lighter commercial for Bic?
Didn’t notice before now!
except they wont even do that to musk. Nobody wants to try a billionaire in court, musk is known to send armies of private detectives on people. He’ll close a factory in your district out of spite. Billionaires are afraid of taxes because as long as they have way too much money they can continue to do the illegal shit that made them rich.
So wait, is it OK to do INSIDER TRAIDING now?
Well not for me and you. I have worked for public traded companies before and they would announce blackout periods where we weren’t able to sell. Since we worked inside the company and knew stuff the general public wouldn’t.
Part of the many reasons why I won’t do another 401k and instead use a Roth.
What does a Roth vs 401k have to do with any of this? I buy index funds in both accounts, nothing to do with company stock programs whatsoever.
Well you have to account all the stress the poor people in power have to contend with each day. A little bonus at the end of the line is not that big of a deal. /s
… and nothing will happen.
Oh NOOOOO! So you might point at this genius brain to tell us, he’s just another fraudster? NOOOOoooooo! Who whould have thought? /s
That title is a very long way of saying that he’s been accused of inside trade
How could a CEO of any company trade his own stock from the company and not be insider trading?
The fact they are allowed to control stock is laughable… At best, stock from the company you control should be in a blind trust (which would still be laughable but we can at least pretend)
They have to give advanced notice before selling, they can’t just sell stock on the whim.
So?.. I am the CEO… I know our new line of highly anticipated space tentacle dildos are not going to be in stores by Christmas as expected, I give notice and sell stock before the public finds out and stock goes down
I also know, because of the delay, we are squeezing the Chinese manufacturer, so I will give notice and buy the stock in January knowing we are probably going to offer deep discounts to get those consumers back
How is giving advance notice any safety? unless the rules say they need to give 500 days of notice or something long enough there is no possible way to predict properly with ALL the information and power a CEO would have to manipulate the stock
The public will see the notice and sell their stock before the CEO can, tanking the price
If I’m a stock holder or potential buyer of stock and I read that the CEO is dumping billions of dollars of his own stock, I am going to think something bad is happening. Notifying the public in advance gives us more information to decide what we should do.
Sometimes, that information just tells us this is a scheduled dump of a small percentage, which is normal and expected. Sometimes it is a huge dump, which is unexpected.
If I’m a stock holder or potential buyer of stock and I read that the CEO is dumping billions of dollars of his own stock, I am going to think something bad is happening. Notifying the public in advance gives us more information to decide what we should do.
They don’t have to notify the public at all
There is nothing in the SEC laws that makes it necessary to disclose the use of Rule 10b5-1 to the public, but that doesn’t mean companies shouldn’t release the information anyway. Announcements of utilizing Rule 10b5-1 are useful in warding off public relations problems and helping investors understand the logistics behind certain insider trades.
I don’t want to defend CEOs here, but there is a code for in the USA, Rule 10b5-1, which sets out a CEOs stock trading plan.
The reason, if you’re not Elon Musk, is that most CEOs are paid in stock and so it’s inevitable they’re going to sell some. So they set out a plan to say I will sell X shares on X date and the market shouldn’t be spooked.
What Elon did here is sell 45 million shares, seemingly outside of any plan, which is insane. Usually they wouldn’t be offloading such a volume.
Selling a small amount of your stock doesn’t indicate you don’t have faith in your own company, but more that you want to convert some of your reward (pay) into actual cash.
I’m not saying the system is good, just that this is how it works.
I’m not saying the system is good, just that this is how it works.
Totally get it… which is why my comment was intended to mean “what the fuck kind of system is this”… not “Elon bad”… although, yes, Elon bad ;-)
It was clearly more profitable to break the law than to follow it.
The SEC has already proved itself absolutely toothless. Even if it was illegal, who would prosecute?
Punish him daddy
When are Tesla shareholders going to wake up and understand that he’s scamming them. You’re all dupes and he’s going to ride you to the last second and let you all burn.
They are accepting his request to give him 50b$ worth of extra stock, at the same time as they are laying off people. What a joke.
Insider trading seems to have been perfectly legal for the last few decades. Nothing will come of this or it would start setting precedent that we could use against our government leaders and other billionaires and federal judges. Not gonna happen.
Didn’t Martha Stewart go to prison for this exact thing?
No. She went to jail for lying to the feds.
Her financial manager was suspected of insider trading. The FBI questioned her about it and she lied to them in an attempt to protect him.
Did her financial manager insider trade?
Probably. She was not found guilty of lying about her reason for selling the stock in question, though she was found guilty of obstruction and other lies, along with conspiracy.
She was never charged with insider trading, so if she hadn’t lied, she would likely have been fine.
Interestingly, they also charged her with securities fraud. They argued that, as the face of a publicly traded company, covering up a crime was market manipulation even if it had nothing to do with that company. The judge dismissed that charge.
That’s called Insider Trading, and is supposed to be illegal.
America
its only illegal if youre dumb enough to not be paying judges and politicians. its not even a lot of money either like a couple thousand and theyll vouch for you
