Report: SEC Investigates Potential Insider Trading by Elon Musk and His Goofy Brother Kimbal

The SEC has reportedly launched an insider trading investigation into Tesla CEO Elon Musk and his brother Kimbal Musk following their recent stock sales.

The Wall Street Journal reports that the SEC has launched an investigation into Elon Musk and his brother Kimbal Musk following a number of stock sales. The SEC is reportedly investigating whether the brothers violated insider trading rules, according to sources.

The SEC began its investigation last year after Kimbal Musk sold Tesla shares valued at $108 million just one day before his brother Elon asked his Twitter followers whether he should sell 10 percent of his stake in Tesla.

Following Musk’s poll, Tesla shares fell sharply after 58 percent of voters in the poll said he should sell his stock. He did in fact sell 10 percent of his shares, framing the sales as necessary to pay potential for potential increased taxes.

Tesla has accused the SEC of harassing the company and its CEO by launching new enforcement investigations. Musk himself has referred to the SEC as the “Shortseller Enrichment Commission.” The SEC has taken issue with Musk and Tesla on multiple occasions, at one point investigating Musk after he stated that he had the funding to take Tesla private.

If Elon Musk told his brother Kimbal about his plan to tweet about his stock sales, there could be evidence of insider trading. Kimbal Musk also serves on Tesla’s board of directors so is not just Elon’s sibling but is directly involved in his brother’s company. Kimbal, known for wearing  a cowboy hat and launching ventures in farming and restaurants, is also notorious for deflecting questions about his brother’s antics.

Kimbal Musk’s trading could violate rules that prohibit employees and board members from trading on material nonpublic information. Employees and directors of public companies are generally prohibited from buying or selling shares when they learn of information that has yet to be made public.

Adam Pritchard, a law professor at the University of Michigan, commented: “What follows is that if the SEC wanted to pursue this, it would be a hard-fought question in court. If they decided to pursue it, Elon Musk would be willing to spend a little bit to pursue it in court.”

Read more at the Wall Street Journal here.

Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship. Follow him on Twitter @LucasNolan or contact via secure email at the address lucasnolan@protonmail.com