Investment Elon Muskin and his brother’s share deals blamed – Authority investigates whether Muski committed insider deals When selling Tesla

The research began with a Twitter survey of Elon Muski’s followers regarding Tesla’s stock sales.

The United States The Securities and Markets Authority is currently investigating whether the CEO of the electric car company Tesla Elon Muskin and this brother Kimbal Muskin recent share transactions have violated regulations related to insider trading, he says The Wall Street Journal (WSJ).

According to the newspaper, the U.S. Securities and Exchange Commission (SEC) began its investigation last year after Kimbal Musk sold Tesla shares for $ 108 million, or about $ 96 million.

The stock deal took place just a day before Elon Musk polled his followers on Twitter to see if he should sell 10 percent of his shares in Tesla. He is known for his diligent tweeting, which may even sway stock prices.

Musk framed the potential deal as a way to get rid of new taxes that lawmakers might impose on unrealized profits.

The company’s share price started to fall sharply after a poll by Musk, as investors interpreted it as negative news. According to WSJ, Musk began selling Tesla shares for billions of dollars just days after its tweet.

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Now authorities are trying to find out if Muskie’s transactions violated insider regulations, i.e. whether Kimbal Musk, who sits on Tesla’s board, was aware in advance of a plan to conduct a Twitter survey related to the share sale, and whether Elon Musk also sold its shares based on insider information.

Stock transactions could thus violate rules prohibiting employees and board members from using information that has not been disclosed to the public in their transactions.

“It is unclear for the interpretation of the law whether the insider regulations apply to the activities of the Muskies. If the SEC wants to look at this card, it can be a difficult issue in court. And Elon Musk is definitely willing to spend some money on the lawsuit, ”says the professor of law Adam Pritchard From the University of Michigan to WSJ.

The SEC’s investigation may also end without formal allegations of abuse ever being made. Elon Musk said To the Financial Times on Thursday that his brother was not aware in advance of the plan to conduct a Twitter survey.

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“I didn’t start the fight, but I’ll end it,” Musk wrote on Twitter on Wednesday, apparently referring to an ongoing investigation by the SEC.

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