Elon Musk, brother face SEC probe of Tesla stock sales
The Securities and Exchange Commission is investigating whether Tesla Inc. Chief Executive Officer Elon Musk and his brother Kimbal violated securities laws when selling shares in the company last year, according to a person familiar with the matter.
The regulator’s probe is focused on transactions late last year just before Elon Musk polled his Twitter followers asking if he should sell 10% of his stake in the company, prompting Tesla’s shares to tumble. The investigation, reported earlier by the Wall Street Journal, is focusing on whether any insider trading rules were violated, said the person familiar with the matter, who asked not to be named because the probe is private.
The SEC, Tesla, Elon Musk and Kimbal Musk did not immediately respond Thursday to requests for comment.
— With assistance by Edward Ludlow