The Wall Street Journal reported that the SEC’s investigation is looking into whether the sale of shares of the company by Musk and his brother violated rules related to insider trading. The investigation began last year after Kimbal sold shares of Tesla worth $10.8 trillion (about Rs 814.28 crore). Earlier, Musk had asked users through a poll on Twitter whether he should sell 10 percent of his stake in Tesla or not. Elon Musk told the Financial Times that Kimbal did not know about the poll on Twitter in advance. However, Musk’s lawyers were aware of this poll.
An earlier settlement with the SEC asked the lawyer to consider Musk’s public statements about the company’s financial condition and other issues. Before Musk’s poll, the SEC issued a summons to him asking for information on financial data. Musk last week accused the SEC of harassing him and Tesla with continued investigations. Musk said that the reason for this was his condemnation of the US government.
Musk’s November sale of shares in Tesla was done automatically according to a trading plan. The company’s stock was down nearly 33 percent after Musk sold a billion-dollar stake in Tesla. On Twitter, 58 percent of those polled asked Musk to sell shares. Tesla and others have not commented on the investigation. An SEC spokesperson declined to comment.
(This news has not been edited by NDTV team. It has been published directly from Syndicate feed.)<!–
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