06:54 AM EDT, 06/12/2024 (MT Newswires) -- An institutional shareholder filed a lawsuit on Tuesday accusing Tesla's (TSLA) chief Elon Musk of making billions of dollars by selling the company's stock using insider information, asking the court to direct him to return 'unlawful profit', Reuters reported.

The lawsuit, filed by the Employees' Retirement System of Rhode Island in Delaware Chancery Court, claimed that Musk sold the company's shares at inflated prices when he knew Tesla car deliveries were below projections while concealing his plan to use the proceeds to buy social media platform Twitter, now renamed X, the report said.

It added that the shareholder's lawsuit also alleges Musk diverted Tesla resources to X and helped xAI, where he is CEO, hire Tesla employees and divert artificial intelligence semiconductors bound for Tesla to the X messaging platform and to xAI.

Tesla and the Employees' Retirement System of Rhode Island did not immediately respond to MT Newswires' request for comment.

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