Musk's Tesla share sale questioned by The Wall Street Journal
Investing.com | Author Sam Boughedda
Published Jan 20, 2023 09:53AM ET
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.
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