Musk sold $3.6 billion in stock late last year after questions loomed about whether or not the company would make its Q4 delivery numbers. And while newsmedia speculated that the number could come in below consensus, the company did nothing to update investors about where they stood relative to their guidance.
Which, as the WSJ points out, begs the question: “Did Mr. Musk know that business had slowed when he sold his shares?”
James Cox, a securities-law professor at Duke University commented to the Journal: “This should be of great interest to the SEC. The issue here is, what did he know and what was the market anticipating when he sold? That’s a critical moment.” …
Musk’s sales came December 12 to December 14 at an average price of $163 per share, the report notes. Those shares had lost about $1.2 billion in value when the company’s stock closed at $108 on January 3 – after the company missed its delivery guidance.
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