WASHINGTON — The U.S. Securities and Exchange Commission (SEC) is reportedly investigating whether recent stock sales by Tesla CEO Elon Musk and his brother, Kimbal Musk, violated insider trading rules.
The Wall Street Journal (WSJ) reports that the SEC's investigation began last year after Kimbal Musk sold shares of Tesla valued at $108 million, one day before Elon Musk polled Twitter users asking whether he should unload 10% of his stake in Tesla and pledging to abide by the poll's results. Elon Musk began selling billions worth of stock a few days after the tweet.
WSJ reports that Kimbal Musk sold 88,500 shares one day after Elon Musk tweeted about the potential sales of his own. Tesla shares fell sharply in the wake of the poll, in which 58% of voters said he should sell.
Spokespeople for the SEC and Tesla didn't immediately respond to WSJ's request for comment.
WSJ also reports that Tesla has recently accused the SEC of harassing the company and Elon Musk by repeatedly launching new enforcement investigations.
To learn more about insider trading laws and the SEC's civil investigation, read the WSJ's full report.
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