Elon Musk and his brother face insider investigation over Tesla stock sale Business

Elon Musk and his brother are under investigation by US regulators over recent Tesla stock sales, according to the Wall Street Journal.

The Securities and Exchange Commission is investigating whether the electric car maker’s chief executive and Kimbal Musk violated insider trading rules, according to unnamed sources cited by the newspaper.

The SEC investigation began last year after Mr Musk’s brother sold nearly 90,000 shares worth $108 million, a day before Elon Musk asked Twitter users if he were to sell part of his stake in Tesla.

Tesla shares fell sharply following the Twitter poll, with 58% of voters telling it to sell. Spokespersons for the SEC and Tesla did not respond to Journal requests for comment.

The report comes as Elon Musk has escalated his war with US regulators, saying he is “building a case” against the SEC.

Mr Musk, the richest person in the world, wrote: “I didn’t start the fight, but I will finish it.”

He was embroiled in a years-long battle with the regulator over his failed bid to privatize the electric carmaker in 2018.

The controversy saw Mr Musk resign as Tesla chairman and led to him and the company being fined $20m (£15m).

Mr Musk has in recent days accused the SEC of leaking information about US government investigations into Tesla, saying the regulator is hitting back at his frequent public criticism of it.

Last week, he filed a complaint against the agency, accusing it of a “campaign of harassment” of “endless and baseless investigations”.

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This notice was published: 2022-02-24 22:00:55

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