(FreedomBeacon.com)- Elon Musk is facing a new investigation from U.S. market regulators who believe that he and his brother, Kimbal Musk, may be involved in an insider trading scheme. It comes after a Wall Street Journal report revealed that Kimbal Musk sold $108 million of Tesla stock a day before Elon Musk posted a poll on Twitter asking whether he should sell 10% of his stake in the firm.
The poll sent prices tumbling, making Kimbal Musk’s investment all the wiser.
But is it proof that he had “inside knowledge”? Who knows. Musk will be mounting a defense against the investigation, and may well argue that he didn’t know that his Twitter poll would have a substantial impact on the price of Tesla stock. He may also argue that he didn’t inform his brother that he planned to make the Tweet – a defense that is, of course, entirely probably.
The SEC investigation is reportedly looking into whether or not Elon told his brother, who is also a member of the Tesla board of directors, about his intention to publish the tweet.
Under insider trading laws in the United States, managers and employees of a company listed on the stock market are not allowed to buy or sell securities based on information or knowledge that is not public.
The SEC has not commented on the investigation.