Musk is one of the most controversial entrepreneurs of our time, constantly making headlines for new and exciting reasons. The Tesla and SpaceX CEO sold additional shares worth over $1 billion on Dec. 28, 2021, ending a stock-selling spree that began in early November. Tesla recalled nearly 500,000 cars two days later, raising the question of whether Musk and Tesla were selling their stock to get rid of it before it plummeted after the recall announcement.
In the Tesla recall, which models were affected?
Following Musk’s announcement of the end of his stock sales, Tesla recalled over 475,000 vehicles after the U.S. safety regulatory cited a safety issue.
According to a BBC report, the American electric automaker announced it would recall 356,309 Tesla Model 3s manufactured between 2017 and 2020 due to possible rear-view camera issues. 119,009 Model S models from 2014 to 2021 model years had problems with the secondary latch on the front or back trunk.
Only about 1% of the recalled Model 3s had a problem with the rear-view camera. Tesla said that the boot lid’s continual opening and closing could lead to a breakage of the cable that provides feeds from the rear camera to the display, increasing the risk of a collision.
It was noted that an issue with the secondary latch on the front trunk of the Model S could cause it to open abruptly, blocking the driver’s view. About 14% of the Model Ss recalled having this issue. Tesla also claims that none of its defects have resulted in crashes, injuries, or fatalities.
Elon Musk’s stock sales occurred at an inauspicious time.
According to Elon Musk’s financial filings, Tesla shares were worth approximately $1.02 billion as of Tuesday, Dec. 28, 2021. CNBC reported that Musk also purchased 1.6 million shares of Tesla for $6.24 per share, taking his Tesla holdings to 177 million shares.