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Elon Musk and his brother are under investigation by the SEC for insider trading

Tesla and SpaceX CEO Elon Musk and brother Kimbal (who sits on the company’s board of directors) are currently the subject of an investigation by the US Securities and Exchange Commission (SEC).

Elon Musk and his brother are under investigation by the SEC for insider trading

Elon Musk and his brother are under investigation by the SEC for insider trading

The investigation reportedly began late last year after Elon and Kimbal sold Tesla shares valued at $108 million. Once the shares were sold, Elon Musk asked his Twitter followers if he should sell 10% of his Tesla shares and, with a positive response, the stock price ended up dropping.

What the investigation seeks to determine is whether this sale violated the rules of ‘insider trading’ (insider information, in Portuguese), which seek to prevent the company’s leaders and administrators from having the ability to trade shares with information that has not been revealed. to the public.

As reported by The Wall Street Journal, the investigation seeks to understand whether Elon provided brother Kimbal with the information he intended to carry out the investigation the day before it was done.

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