An earlier agreement with the SEC required his public statements about the company’s finances and other subjects to be examined by its legal advisor.
The Wall Street Journal reported Thursday, citing people familiar with the matter, that the U.S. Securities and Exchange Commission is investigating whether a recent stock sale by Tesla Inc. Chief Executive Elon Musk and his brother Kimbal Musk has prompted “insider trading rules have been violated”. Reportedly, the investigation began last year after Kimble sold shares of the electric car maker for $108 million, a day before Musk asked Twitter users if he should sell his 10 percent stake in Tesla.
Kimbal Musk was not aware of the Twitter poll before, Elon Musk told the Financial Times in an email, adding that his lawyers were “aware” of the poll.
An earlier agreement with the SEC required his public statements about the company’s finances and other subjects to be examined by its legal advisor.
The SEC issued a subpoena on November 16, ten days after Musk’s survey, asking for information related to certain financial data.
The potential investigation will escalate Musk’s battle with regulators as they investigate his social media posts and allegations of discrimination against Tesla workers.
Last week, Musk accused the SEC of harassing him and Tesla with an “endless” and “incredible” investigation to punish him for being an outspoken critic of the government.
Elon Musk’s share sale in November was automatically executed according to a trading plan that he created on September 14, a filing revealed that the share sale, including stock options, were due to expire in 2022.
Tesla stock has fallen nearly 33% since Musk began selling billions of dollars worth of shares on November 8, days after a poll where 58% of voters asked him to sell.
Tesla and Kimbal Musk did not immediately respond to Reuters requests for comment. An SEC spokesman declined to comment.
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