Musk isn't going to get a break from the SEC any time soon. The SEC is investigating whether Musk and his brother violated insider trading regulations with recent share sales, according to sources. Kimbal sold 88,500 shares of his brother's stock just a day before he was to ask followers about selling stock. The company chief might have broken rules that prevent employees from trading on confidential information.
Kimbal Musk frequently tradedTesla stock at regular intervals. According to an SEC filing, he didn't on November 5th.
The SEC has been asked to comment. The communications team will be dissolved sometime in 2020. The Commission isn't on friendly terms with Musk, as he said a day earlier that he would finish the fight he believed the SEC started.
The investigation will add more tension to the feud if the report is accurate. The SEC took action against Musk after he took the company private. Musk agreed to a settlement that included approval requirements for any financially relevant social media posts, but that wasn't the end of the fight. Over the past few years, the SEC has been looking into Musk's use of social media, and just a few days ago, they subpoenaed the EV maker for information on their processes for honoring the settlement.
The SEC and Musk sparred at the same time. He accused the regulator of unfairly targeting him and excluded the court from monitoring. The SEC denied the accusations. Whatever the truth behind those claims, it's safe to assume Musk won't welcome any new investigation with open arms.
The article originally appeared on Engadget.
All Rights Reserved © 2024
