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Media: Stock exchange watchdog in US investigates transactions Musk brothers

Photo: ANP

The US stock watchdog SEC has launched an investigation into Tesla CEO Elon Musk and his brother Kimbal, who is a board member at the electric car manufacturer. The regulator wants to know whether the brothers broke the rules when they sold Tesla shares last fall, an insider confirmed to Bloomberg news agency after reporting by The Wall Street Journal.

It would involve transactions just before Elon conducted a Twitter poll in early November asking if he should sell 10 percent of his Tesla stake. The brothers may have violated insider trading rules at the time. The SEC declined to comment on the report, and Elon and Kimbal have not yet responded.

The Tesla CEO and the world’s richest man recently complained that he would be the target of an endless and ongoing series of SEC investigations. That complaint was later denied by the regulator.

The dispute was about a lingering case that started with tweets from Elon in 2018. At the time, a major scandal arose because the well-known entrepreneur had claimed via Twitter that he was considering delisting Tesla and that the financing was in place. That turned out not to be true, but the tweets did cause a sharp rise in Tesla’s stock price. Musk then reached a settlement with the regulator and thought that the matter would be settled. The latter was not the case, a Musk lawyer recently stated. The Tesla boss’s defense thinks the SEC has targeted Musk because he is an outspoken critic of the US government.



Media: Stock exchange watchdog in US investigates transactions Musk brothers
Source link Media: Stock exchange watchdog in US investigates transactions Musk brothers

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