The Securities and Exchange Commission is reportedly investigating whether Tesla stock sales by Elon Musk's brother, Kimbal Musk, violated insider trading rules because the sales were made one day before Elon Musk tweeted about selling shares in the company, according to a Wall Street Journal report.
The SEC reportedly began investigating the brothers last year after Kimbal Musk sold 88,500 shares the day before Musk's Twitter poll about selling 10% of his stake in Tesla. Musk eventually sold more than $11 billion worth of stock during the last few months of 2021. If Kimbal Musk (who is a Tesla board member) knew about the upcoming Twitter poll before it happened, he could be in violation of rules that prevent board members and company leaders from trading on information not known to the public, according to the Journal report.
Last week, Elon Musk's attorney filed a complaint that alleged the SEC is harassing the Tesla CEO and trying to censor his speech by investigating his Twitter comments. The complaint argues that the SEC continues to overstep the bounds of a 2018 agreement wherein Tesla agreed to monitor Musk's tweets related to the company.