‘After one family SEC strategy, remember playing Happy Family?’
The United States Securities and Exchange Commission (SEC) is currently investigating Tesla's CEO, Elon Musk and his brother, Kimbal Musk, for allegedly violating *insider trading policies.
*An insider trading policy is the purchase or sale of shares of a publicly traded company by a person who has non -public material information about the shares.
Citing a source from the Wall Street Journal (WSJ), Kimbal was found to have sold his stake in Tesla for 108 million, a day before Elon cast a vote on Twitter which saw the CEO sell a 10% stake.
Seeing Kimbal's actions, the SEC has conducted an investigation against the Musk brothers in case of any violations of insider trading policies.
In response, Elon in an e-mail sent to the Financial Times stated Kimbal did not receive any preliminary information about the Twitter voting plan.
The e-mail also stated that Musk's lawyer was 'aware' of the vote on Twitter.
Earlier, the SEC had issued a subpoena to Elon Musk, ten days after the vote on Twitter was made to seek information on the company's financial data.
The potential of this investigation will add to the suffering for Musk who is currently facing regulators over his social media issues, treatment of Tesla employees and allegations of discrimination.
This is not the first time Elon Musk has had problems with the SEC, where he has previously accused the SEC of often targeting only himself and restricting his right to speak.
According to the filing, the sale of shares by Elon Musk in November was executed automatically according to plans made on September 14 including stock options that were supposed to expire in 2022.
Since Nov. 8, Tesla shares have fallen 33% when Musk began selling billions of dollars of its holdings, days after a poll on Twitter agreed he was selling them.
