Breaking News
SEC Investigates Elon Musk and Brother For Insider Trading
Published
11 months agoon

The Securities and Exchange Commission is investigating Tesla CEO Elon Musk and his brother on suspicion of insider trading. This pertains to a November 2021 tweet made by Elon that asked followers if he should sell Tesla stock.
RELATED: Elon Musk Pushes Dogecoin Over Bitcoin When Buying Things
Elon Musk Asked Twitter Followers If He Should Sell Tesla Stock
A day before the tweet, Kimbal Musk, Elon’s brother, sold 88,500 Tesla shares worth $108 million.
Afterward, when Elon’s followers responded “yes” on whether he should sell his stock, he did so. Consequently, Tesla stock prices went down after his tweet.
Kimbal sits on Tesla’s board of directors. He usually trades Tesla stock that he owns using a predetermined plan. This plan prevents Kimbal from being accused of insider trading charges.
However, the SEC determined that Kimbal’s trade prior to Elon’s Twitter survey was not part of that plan.
Instead, the agency believed that Elon might have told Kimbal about his Twitter plans. This might have led the other Musk to unload some of his shares outside of his usual schedule.
SEC, Elon Musk At Odds Over His Tweets
Elon Musk’s current brush with the SEC is not the first, nor will it be his last. The Tesla CEO is notorious for going on social media to announce controversial statements that attract the attention of the SEC.
Last August 2018, Musk tweeted that he might turn Tesla into a private company. As this plan can lead to a massive payout for stockholders, Tesla share prices immediately surged higher.
As a result, the SEC flagged Tesla and began an investigation into possible market manipulation. The agency determined that Elon’s tweet counted as fraud, especially since Tesla never made moves to privatize.
Consequently, Musk paid a $20 million fine, while Tesla also shelled out another $20 million. Musk’s net worth at the time was at $225 billion.
This means that the $20 million fine he paid was equivalent to $10.82 for the average American. In addition to the fine, Musk also agreed to temporarily step down as CEO of the electric vehicle company.
Musk Used Twitter To Ask Followers If He Should Sell Tesla Stock
The latest investigation involved Elon Musk’s strange Twitter poll last November. Prior to the tweet, Senator Ron Wyden (D-OR), proposed an annual tax on investments held by America’s billionaires.
This marks a change from the current setup, where the government only taxes investments during the time of sale.
Meanwhile, Elon Musk vehemently opposed the proposal. He also took the exception that billionaires like him are allegedly avoiding paying higher taxes. He took to Twitter to ask his followers.
“Much has been made lately of unrealized gains being a means of tax avoidance,” he tweeted. “So I propose selling 10 percent of my Tesla stock. Do you support this?”.
Musk added a poll to record the eventual vote. It ended with 57.9% in favor of Musk selling some of his stock, which he promptly did.
Critics, however, said that Musk planned to sell his stock at that time anyway, regardless of the voting. He was due for newer stock options at the time, and he can only finance his new options by selling old stock.
Watch the Yahoo Finance video reporting that Tesla CEO Elon Musk and his brother are the focus of SEC insider trading probe:

Do you think the SEC has an ax to grind against Elon Musk? Or, is Elon Musk a victim of his own need to validate himself on social media?
Tell us what you think about the ongoing feud between a billionaire CEO and the SEC. Share your comments below.
You may like
-
Trump’s Tax Returns Go Public
-
January 6 Committee Refers Trump to the DOJ for Criminal Probe Over Capitol Siege
-
Retail Sales in November Tank by 0.6% as Consumers Feel Inflation
-
Trump Slams Biden Over Scathing Speech Against MAGA Republicans
-
WHO Confirms 80 Cases, Monkeypox Outbreak in 11 Countries
-
New Graduates Want $100K Starting Pay When It’s Really $55K
SIGN UP FOR BNA NEWSLETTERS

Over 1,000 Flights on Monday Gets Canceled Due to a Severe Winter Storm

New Poll Shows Trump Leading by Double Digits in Potential South Carolina Republican Race

5 Memphis Police Officers Charged With Second-Degree Murder Over Tyre Nichols’ Death

Texas Issues $224 Million Contract to Build 30-Foot Border Wall in Laredo Sector

GOP House Members Introduce Legislation to Repeal 1934 National Firearms Act

DOJ Files Lawsuit Against Google Over Digital Ads Practices

Coronavirus Worries Among Americans Dropping, Poll Finds

New York Gov. Andrew Cuomo Places State ‘On Pause’ Tells Non-Essential Workers to Stay Home

Prominent BLM Activist Charles Wade Charged with Child Trafficking & Prostitution
Obama Is A Tyrant

COMMENTARY: Trump Has a Secret Weapon, the Democratic Party

US Military Plane Crashes in Afghanistan with 5 Onboard
International Women’s Day: Conservative Women Throughout History
This Refugee Wouldn’t Last Long In America

DeSantis calls Special Session to Ban Private Sector Employee Vaccine Mandates

WATCH: Donald Trump, Melania Trump Cheered at National Championship Game

WATCH: Pompeo Joins ‘Fox & Friends’ After US Airstrike Kills Top Iranian General

WATCH: Kanye West Brings Inmates and Guards to Tears During Surprise Gospel Concert at Texas Jail

WATCH: Trump Receives Standing Ovation at Alabama Football Game

WATCH: Taco Bell Foundation Surprises Worker With Scholarship Money
