US Securities And Exchange Commission Raises Serious Allegations Against Elon Musk

Abdul Ghani

SEC, U.S. Securities and Exchange Commission: According to the SEC, the Tesla boss is said to have informed his brother in advance about possible share sales. The US Securities and Exchange Commission is investigating whether the recent stock sales by Tesla founder Elon Musk and his brother Kimbal violated the agency's insider trading rules, the Wall Street Journal reports.

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Elon Musk (Tesla)© REUTERS / Rebecca Cook

At the center of the investigation is a tweet from the Tesla founder in November, in which he asked on Twitter whether he should sell 10 percent of his Tesla shares so that he could pay tax on the proceeds.

Almost 60 percent of Musk's Twitter followers were in favor of it at the time. The SEC now suspects that Musk may have informed his brother Kimbal about the Twitter poll in advance. The agency's insider trading rules prohibit company employees from trading stock based on undisclosed information.

Elon Musk denies this and told the Financial Times that he only informed his lawyer about the survey.

Shares sold for more than $100 million

Kimbal Musk had sold more than $100 million worth of Tesla stock the day before the tweet was published. Since Elon Musk started selling his Tesla shares, the shares have lost more than 33 percent.

The Tesla boss is not on good terms with the US stock exchange regulator anyway. Musk recently accused the agency of conducting a "harassment campaign" against him. The dispute between Musk and the SEC began in 2018 when he had to agree to a humiliating settlement after investigations into a tweet in which he announced his intention to delist Tesla.

Since then, Musk has had to show his lawyers in advance any social media postings that could contain information relevant to Tesla's share price. The SEC subpoenaed the Tesla CEO several times because it suspected violations of the agreement.

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Member Of Freelancers Union (USA), Freelance Writer!, and Digital Creator. Ghani Mengal is an enthusiast Freelance blogger and digital marketer. His content has been published and featured on many popular blogs, websites, and publications. Including TeelFeed, LifeHack.org, Data-Driven Investor, TextSniper, Scientific Publication The Predict, The Startup, The Ascent, Heart Affairs, Illumination, And The List goes on.

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