(PresidentialInsider.com)- Tesla and Space X founder Elon Musk is facing an investigation from U.S. market regulators who believe that both he and his brother may have violated insider trading rules. The Wall Street Journal reported on Thursday that the two men may have violated the rules last year when they sold large amounts of shares last year.
Kimbal Musk sold $108 million in Tesla stock in 2021, only a day before the share price dropped dramatically. The value of Tesla stock fell when Elon Musk posted a poll on Twitter asking whether he should sell 10% of his stake in the electric vehicle company he founded.
The Securities and Exchange Commission is now reportedly investigating whether Musk told his brother that he planned to make the tweet, which would constitute insider trading. His brother is also a member of the Tesla board of directors.
Under the law, employees of a listed company cannot sell or buy securities when they are aware of information relating to the company that has not yet been announced. If they do, they are violating insider trading laws,
The SEC has not yet commented on the existence of the report.
It’s not the first time that Musk has had trouble with the SEC, either. Back in 2018, Musk claimed on Twitter that he had the necessary funding to take Tesla off the stock market entirely. It resulted in Musk coming to a new agreement with the company in which his use of social media was restricted, with posts relating to Tesla being subject to pre-approval from Tesla attorneys. $20 million was also paid by Musk and Tesla as part of a settlement agreement.