Home ›› 25 Dec 2022 ›› Stock
Tesla Inc shares hit a fresh two-year low in volatile trading on Friday as top boss Elon Musk’s promise to not sell his shares in the electric-car company for at least two years did little to reassure investors.
Musk has offloaded shares worth $40 billion in the world’s most valuable carmaker since late last year, with $15 billion worth of stock sales coming after he made similar pledges in April, partly to fund the acquisition of Twitter.
“If Musk sells another billion or so dollars of shares in the near future, and that exerts downward price pressure on Tesla’s share price, investors might have a decent claim for securities fraud,” said Howard Fischer, a former US Securities and Exchange Commission (SEC) attorney and a partner at law firm Moses & Singer.
SEC rules require that public companies and their executives disclose accurate information that may be material to investors through channels that investors know to monitor. It does not usually specify how companies should do that.
