Elon Musk sold nearly 36 billion worth of Tesla stock

Elon Musk sold nearly $3.6 billion worth of Tesla stock before the company said it missed delivery targets

Tesla CEO Elon Musk sold nearly $3.6 billion worth of stock just three weeks before the electric-car company announced it had missed its delivery targets.

Musk had netted nearly 22 million of its 426 million shares between Dec. 12 and 14, 2022 as Tesla was forecast as one of the worst-performing stocks of the year, according to the Wall Street Journal.

While late 2022 saw a small recovery in the company’s shares, shares plunged even further when the market opened on Jan. 3 after the company announced it missed delivery targets by nearly 22,000 cars.

Given the timing of the transaction, Donald Langevoort, another professor of securities law at Georgetown University, called for more transparency.

“Is it suspicious? Yes. Is it entirely possible that there are other explanations? Of course,” Langevoort told the WSJ. “But that’s what the enforcement process is about.”

Experts are calling for more transparency into why Elon Musk (pictured) sold 22 million shares just weeks before disappointing sales numbers were released

Experts are calling for more transparency into why Elon Musk (pictured) sold 22 million shares just weeks before disappointing sales numbers were released

Tesla stock has rebounded after a disastrous start to the year, up 3.11 percent on Friday

Tesla stock has rebounded after a disastrous start to the year, up 3.11 percent on Friday

Combined with December’s stock sales, Musk has sold more than $39 billion in stock since its peak in November 2021, the majority of which has been used to fund his $44 billion Twitter acquisition.

Even after all the sales, Musk still owns 426.6 million Tesla shares, giving him a 13.4 percent stake in his company.

Recent sales in December accounted for more than a third of the shares he sold in 2022, with the timing raising questions about insider trading.

Insider trading refers to the illegal practice of trading stocks through confidential information. In Musk’s case, it would sell 22 million shares while knowing of the disappointing sales figures before they became public knowledge.

“The question here is what did he know and what did the market expect when he sold,” Duke University professor of securities law James Cox told WSJ. “This is a critical moment.”

“That should be of great interest to the SEC,” he added.

While the SEC prohibits insider trading, there are several exceptions that Musk has previously availed of. By filing a pre-set trading plan with the SEC, known as a 10b5-1 plan, corporate insiders are largely free to sell and buy their corporate stock.

Although the December trade was filed without the preset schedule, SEC rules at the time meant he didn’t have to disclose whether or not he actually used the schedule.

Tesla did not immediately respond to ‘s request for comment. The SEC declined comment.

Tesla planned a reduced production schedule at its Shanghai plant (pictured) in January amid a rising number of COVID-19 infections in the country

Tesla planned a reduced production schedule at its Shanghai plant (pictured) in January amid a rising number of COVID-19 infections in the country

Musk’s December trade came as the company’s shares fell 42 percent in that month alone and ended 2022 with a 69 percent plunge.

The drop in Tesla shares, the lowest in two years, came as Portal reported that the electric carmaker had halted production at its Shanghai gigafactory.

Meanwhile, a Portal analysis showed that the prices of used Tesla cars were falling faster than those of other automakers, weighing on demand for the company’s new vehicles that were rolling off the assembly line.

According to the latest delivery figures released by the automaker, the company delivered an impressive 1.3 million vehicles last year – an increase of more than 40 percent compared to the previous year.

However, the company’s fourth-quarter numbers fell short of Wall Street expectations.

The data -- which serves as the best approximation of the company's sales -- shows that Tesla's growth is slowing, though it has made strides in the early stages of 2022 and last year

The data — which serves as the best approximation of the company’s sales — illustrates that Tesla’s growth is slowing, although it saw success in the early stages of 2022 and last year

In the past three months, Tesla delivered an underwhelming 405,278 vehicles, the data shows — well below analysts’ median estimate of 431,000.

The data — which serves as the closest approximation of the company’s sales — illustrates that Tesla’s pace of growth is slowing, even as it saw success in the early stages of 2022 and last year.

Last month Musk said he would not sell Tesla stock for at least 18 months in an apparent attempt to comfort shareholders who have watched the stock fall nearly half its value since the CEO bought Twitter in October has lost.

“I don’t sell stocks for 18 to 24 months,” Musk said.