Elon Musk and brother, a Tesla director, face insider-trading investigation
The Securities and Exchange Commission is investigating whether Tesla CEO Elon Musk and his brother, Kimbal Musk, violated insider-trading rules with recent stock sales, The Wall Street Journal reported yesterday.
"The SEC's investigation began last year after Kimbal Musk sold shares of Tesla valued at $108 million, one day before the Tesla chief polled Twitter users asking whether he should unload 10 percent of his stake in the electric-car maker and pledging to abide by the vote's results," the Journal wrote.
Separately, a US judge yesterday denied Tesla and Musk's various requests related to their claim that the SEC is "harassing" the company and its CEO. (More on that later in this article.)
Musk's Twitter poll in November 2021 received 3.5 million votes, with nearly 58 percent of respondents agreeing that Musk should sell 10 percent of his Tesla stock. Musk's poll question said, "Much is made lately of unrealized gains being a means of tax avoidance, so I propose selling 10 percent of my Tesla stock. Do you support this?"
The results indicated that Musk's "tweet was viewed as negative news," and Tesla "shares fell sharply in the wake of Mr. Musk's poll," the Journal noted. Elon Musk both sold and bought large amounts of Tesla stock over the ensuing weeks.
https://arstechnica.com/tech-policy/2022/02/sec-probes-elon-musk-and-brother-for-possible-insider-trading-of-tesla-stock/
Yeah... Just a little shady.
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