Elon Musk and brother under investigation for alleged insider trading

[turbinetree]

Source: The Guardian

Kari Paul and agencies
Thu 24 Feb 2022 16.05 EST

Kimbal Musk sold Tesla shares the day before his brother asked Twitter if he should sell

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The US Securities and Exchange Commission has reportedly opened an investigation into whether recent stock sales by Tesla CEO Elon Musk and his brother Kimbal Musk violated insider trading rules.

The SEC inquiry – first reported by the Wall Street Journal on Thursday – was sparked in part by the Tesla CEO’s own tweets.

It centers on an incident last year when Kimbal – who sits on Tesla’s board of directors – sold $108m of shares in the electric carmaker. The exchange took place just a day before before Musk polled Twitter users asking whether he should offload 10% of his stake in Tesla, sending shares falling.

Read more: https://www.theguardian.com/technology/2022/feb/24/elon-musk-brother-under-investigation-insider-trading

[C Moon]

1. He'll just threaten to move his plants to China if he's charged.

Why are rich people so obsessed with cheating, lying and having more money than they could ever spend in their lives?

[SunSeeker]

10. They're money hoarders. It's a sickness. nt

[BigmanPigman]

2. I am having a lot of coincidences this week

and this is one of them. I never even heard of Kimbal until 2 days ago when he was on a cooking show. Apparently he is a chef and has a lot of restaurants and is into philanthropy through food. I ended up Googling him when I heard his last name to see if he was related to Elon. So it turns out he is corrupt as well. I am not surprised. Many philanthropists are also corrupt in their personal finances.

[truthisfreedom]

3. Dumb move by smart guys.

Why would they jeopardize their freedom like that? He could have sold his stocks the very instant Elon tweeted.

[madville]

4. Didn't even know he had a brother

Guess it depends if they have any evidence or if it was a coincidence, Musk tweets dumb stuff regularly, who knows.

[SunSeeker]

8. Me neither. I wasn't even sure he was human.

[oldsoftie]

14. I never heard of him either. nt

[ColinC]

5. lolll no wonder he hates the SEC

Most criminals don't love the people who are putting them in jail.

[BidenRocks]

6. Musk puts his $ into jobs.

Meanwhile in trumpworld......

[2naSalit]

16. He sees them as...

Possessions whom he can abuse as he sees fit.

And just how many of these jobs does he actually provide that are worth having? He's also dumping a bunch of jobs in California so he can move to Texas where he can get away with more abuse of his workers.

And the product is starting lose its luster so the stock values could decline... Tesla problems emerging/recalls and space junk falling from the sky and pissing off astronomers around the world.

I don't have a favorable view of either of them, they are more like a waste of good air that should be put to better use by endangered species, JMHO.

[speak easy]

7. Can't see this. It was. his brother who sold the shares.

Without evidence of collusion ...

[SunSeeker]

9. What's so hard to see? They're brothers, they talk.

Elon's brother sits on Tesla's board. He suddenly sells $108 million in Tesla stock, the day before Elon indicates he might dump huge amounts of Tesla stock, causing the stock price to dive. If Kimbal sold his stock because Elon told him, before the world found out, that he might be dumping huge amounts of Tesla stock, then Kimbal -- and Elon -- committed insider trading. All those people who bought Kimbal's $108 million worth of Tesla stock got ripped off, since they bought it at top dollar without knowing what Kimbal and Elon knew: that Elon was going on Twitter the next day to suggest he might dump huge amounts of Tesla stock, thus driving the price of the stock down. Those buyers were left incurring the losses that Kimbal should have incurred, but for his insider knowledge. That is a crime.

[Princess Turandot]

11. This might be a little confusing, since the article focused on The Tweet..

A quick summary:
- On November 5, Kimbal Musk sold $108 million worth of shares in Tesla
- The next day, November 6, Elon Musk launched his bizarre Twitter poll, asking the twitterverse if he should sell any of his Tesla stock
- Two days later, November 8, Elon Musk started selling his Tesla stock. The purpose of his first sales transaction, in which he sold 934,091 shares worth $1.1 billion, was apparently to get cash to pay a tax bill related to options he had recently exercised
- He continued to sell his stock over the next week or so. In total, by November 16, he sold 8,230,057 shares, for $8.8 billion
- Tesla's stock price has fallen about 33%, since Musk began selling his on November 8

What the SEC is probing (I assume) is whether or not Elon told his brother what he was going to do the following week, since it was likely going to take a whack at the share price.

[oldsoftie]

13. This illustrates what would happen if there was an "asset tax".

Musk sold shares to pay taxes. Tesla stock is down over 30% since he began doing it. So all the rest of us who own shares have been battered. This would happen on a much larger scale if everyone who is super rich had to start paying based on what they're worth instead of what they earn.
Change the description of "income" & borrowing to create it; and tax that.

[Comfortably_Numb]

12. The movie Wall Street comes to mind, when Charlie Sheen asks Gordon Gekko "how many yachts can you

water ski behind?” I too am convinced these mega-rich assholes have a hoarding complex. It’s their disease.

[GoneOffShore]

15. I would like to see Tesla become the DeLorean of the 21st Century.

[2naSalit]

17. I already see...

EM as the Walmart of the techwerld.