Feb 24, 2022, 04:35pm
The SEC is investigating whether Kimbal Musk, the younger brother of Musk, violated insider trading rules when he sold $108 million worth of his shares in the company.
On September 3, 2020, Musk will visit the construction site of the new Gigafactory near Berlin. Musk is in Germany where he met with CureVac on Tuesday and also with German Economy Minister Peter Altmaier yesterday. The photo was taken by Maja Hitij.
On November 5, Kimbal Musk sold 88,500 shares ofTesla, where he serves on the board, one day before his billionaire brother asked his followers if he should sell 10% of his stock.
The price of stock dropped dramatically after the poll.
According to the Wall Street Journal's unnamed sources, the SEC began investigating last year if Kimbal Musk knew his brother would be selling his shares before the poll was posted.
The Wall Street Journal noted that Kimbal Musk did not use a 10b5-1 plan, a preset trading plan that allows officers and directors of companies to trade at preset intervals and avoid insider-trading charges.
Forbes asked the SEC for comment on the Wall Street Journal report.
Musk andTesla did not respond to requests for comment.
Kimbal Musk has been on the board of directors. Forbes conservatively estimated in November that he was worth $700 million, owning a 0.04% stake in the company. He holds a seat on the board of the company. A group of shareholders argued that Kimbal has no professional experience in the auto industry and that his connection to Elon complicated his role as an independent director.
The SEC accused Musk of misleading shareholders after he said he might take the company private. Musk was forced to step down as the company's chairman.
A total of $220.2 billion. According to a real-time wealth tracker by Forbes, Musk is the richest person in the world. He is the largest shareholder in both of the world's most valuable companies, with a 23% and 48% stake in both of them.
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