Insider trading investigation against Elon Musk’s brother and sister
Tesla didn’t respond to our request for comment. CNN Business also hasn’t confirmed this investigation.
It refers, apparently, to Steven Buchholz who works in San Francisco for the SEC and is involved with enforcement cases against Musk or Tesla.
According to reports, the investigation centers around Kimbal Musk’s November sale of 88.500 Tesla shares, which earned him nearly $109million.
Kimbal Musk could have earned $5.8 million more if he had not waited to sell his shares before his brother. If they are privy to material information, which could impact the stock’s price, company insiders (e.g., board members and executives) cannot trade.
The question of whether Elon Musk’s decision to exercise options and to sell shares or his plans for a Twitter survey would be company information that is subject to Insider Trading Rules remains unanswered.
Elon Musk stated that “Kimbal didn’t know I would do a tweet poll.” Elon Musk added, “The notion that I care whether my brother sells shares for a few millions less than mine when my tweet poll causes my share sale to exceed a billion is completely absurd.”
Matt McFarland contributed this report.