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Elon Musk Vows To Stop Selling Tesla Stock In Bid To Calm Investors

Elon Musk has stepped forward to appease Tesla investors with a promise not to sell anymore of the electric car maker’s stock for at least two years. As of Friday, when this news broke, the company’s shares price as at a new two-year low.

Recall that the CEO had sold the car company’s shares about five times in 2022 alone and Reuters reported that he had sold a total of $40 billion TSLA between 2021 and 2022. Most of the shares dump has been because of his commitment to Twitter, which saw him raise $44 billion by himself.

However, the tech billionaire does not only have the dropping shares price to worry about. It appears that investors have a legal option in the matter.

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“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,” Howard Fischer, a former U.S. Securities and Exchange Commission (SEC) attorney and a partner at law firm Moses & Singer, said.

Fischer appears to be referring to a SEC law that requires public company executives to let investors know about activities that can affect the company’s stock.

Meanwhile, there is lack of trust in Elon Musk’s promise had he once said something similar in April before he began selling more stocks. Even among employees of Tesla, Musk is not very popular and there was an instance earlier this year when several of them signed an open letter that called him an embarrassment.

The SpaceX CEO’s Twitter investment appears to be a black hole that is sucking more funds in, after his outrageous buyout settlement, which is said to be at least two times more than the company’s value. Despite laying off a significant amount of employees, the social media company is still a long way from making money for Elon Musk.

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Onwuasoanya Obinna

A reader of books and stringer of words. Passionate about Science and Tech. When not writing or reading he is surfing the web and Tweeting.