SEC Opens Investigation into Elon Musk over Possible Insider Trading

SEC Opens Investigation into Elon Musk over Possible Insider Trading

Elon Musk isn’t likely to get a respite from the Securities and Exchange Commission anytime soon. The Wall Street Journal reports that the SEC is looking into whether Musk and his brother Kimbal broke any insider trading rules with recent stock trades. Elon may have told Kimbal he was going to approach Twitter followers about selling Tesla stock, prompting the brother to sell 88,500 shares just a day before the November 6th post, according to officials. 

If this is the case, the company’s CEO may have breached regulations prohibiting workers from trading on confidential information. Kimbal Musk has traded Tesla stock on a regular basis as part of a strategy. According to an SEC filing, he didn’t on November 5th.

SEC Opens Investigation into Elon Musk over Possible Insider Trading

The SEC has been contacted for comment. Tesla’s communications staff was abolished sometime in 2020, thus it isn’t accessible for comment. Musk, on the other hand, is clearly not on nice terms with the SEC, as he stated a day earlier that he “shall complete” a fight that he believes the SEC began.

If the claim is correct, the probe will heighten the tension in a long-running conflict. The SEC took proceedings against Musk in 2018 after he made comments about taking the firm private. While Musk and Elon Musk reached an agreement that includes clearance procedures for any financial-related social media posts, their feud was far from over.

The Securities and Exchange Commission has been investigating Musk’s tweets for the previous few years, citing worries that production-related tweets were not vetted, and Tesla was recently subpoenaed for information on the EV maker’s methods for upholding the 2018 settlement.

At the same time, Musk has engaged in public sparring with the SEC. This year, he accused the regulator of a “harassment campaign” in which he was unfairly singled out and the court was barred from supervising. The allegations were refuted by the SEC. whatever the truth is behind those allegations, it’s reasonable to assume Musk will be wary of any fresh inquiry.

The Securities and Exchange Commission of the United States has responded to Elon Musk’s charges of sexual harassment. The SEC said in a letter to a federal judge in New York on Friday that its regular check-ins with Tesla were in line with the court’s expectations for the company’s 2018 settlement.

After one of Musk’s tweets garnered the attention of the SEC, Tesla agreed that its attorneys would preclear certain of his remarks. Musk stated in a tweet that he has “financing secured” to take Tesla private for $420 per share. Following an inquiry, the SEC said the message was fraudulent, and Tesla and Musk finally agreed to a $40 million settlement.