Musk accused of selling $7.5B stock before releasing disappointing sales data | Hacker News Reader

Musk accused of selling $7.5B stock before releasing disappointing sales data

fortune.com

34 pointsgehwartzen12 comments

Not sure I see a nexus between this and any other complaint about Musk TBH. This is a rule which any director can be held to. It doesn't relate to his 420/FCC problem, or his lawsuit(s) over the director renumeration, it's straightforward that if you have material information to value of shares, and trade in advance of a fall in value, you can get accused of this.

The wider risk to the entire board interests me. If anyone else sold, if they collectively signed off on this, then I think the board as a whole has a problem here.

I think I've found out what his actual skills are; It's certainly not being a leader (see Twitter).

> Michael Perry accused both the CEO

> and almost the entire board of collectively violating their responsibility

He can really build a board of directors that does what he wants.

How much did he promise them to get them to take this sort of risk? It's amazing.

Denholm and Ehrenpreis are VC partners, who are probably on other boards. They have no excuse of not knowing. I suppose after getting away with the Solar City merger they thought the risk was not high.

I guess the penalties for breaking the law are not hard enough…

Does he not have a 10b5-1 plan?

If not that seems insane for someone at this level.

> Unlike previous stock sales by Tesla insiders, however, these were not the result of a Rule 10b5-1 trading plan, which removes discretion over timing from an insider and hands them to a third-party broker.

According to the complaint, he used 10b5-1 plans for previous sales but not for this one:

"100. Musk previously disclosed his planned sales of Tesla stock via the execution of 10b-5-1 plans but admitted that he had no 10b5-1 plan for the November and December 2022 sales."

https://assets.bwbx.io/documents/users/iqjWHBFdfxIU/rvS0T5sG...

man that's just dumb

Is anybody surprised at this point?

One would think he could afford good legal and financial advice for things like this. The prior settlement with the SEC required that his tweets about Tesla get reviewed beforehand. Wonder if that is actually happening

That would imply some willingness to accept and act upon either.

Part of the problem is that ignoring legal advice hasn’t meant anything to him up until this point.

When you are wealthy enough, fines are just a price and there are plenty of statutory penalty limits that make a lot of rule breaking make financial sense.

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