The U.S. Securities and Exchange Commission (SEC) is investigating whether the sale of shares in Tesla CEO Elon Musk and his brother Kimbal Musk “violated the rules of confidential trading.”
The move came just a day after Elon Musk confessed to filing a lawsuit against the federal agency.
SEC suspects Elon Musk
According to reports, the investigation began in 2021 after Elon’s brother Kimbal Musk sold Tesla shares worth $ 108 million. This happened the day before Musk conducted a survey on his Twitter asking if he should sell 10% of his stake in the company.
Elon Musk told the Financial Times that Brother Kimbal did not know about the survey on Twitter until it was published.
Tesla’s chief recently said the SEC was harassing him and Tesla with endless investigations. He believes the commission is doing this to him because is an outspoken critic of the government. However, the SEC did not make a statement to that effect.
Did Musk manipulate the markets?
Elon Musk does not have a good relationship with the US SEC. In 2018, the SEC filed a lawsuit against the head of Tesla for his comments on “secured funding.” He claimed that the agency works for people who are trying to harm his car company. Musk was later forced to step down as chairman of the board. Tesla and her director and lover of “memecoins” had to pay extra a fine of 20 million dollars.
Therefore, Elon did not want his electric car company to pay and suffer for his comments. However, he continued to buy $ 20 million in shares from Tesla, which together accounted for more than 71,000 Tesla shares. This settlement eventually helped Musk add more shares.
Tesla shares have fallen since November 8 by 33%. At the time, Musk began selling shares worth billions of dollars, with 58% of voters asking Elon to sell his stake.