The SEC’s investigation began last year after Mr. Musk’s brother sold shares of Tesla valued at $108 million, one day before Mr. Musk polled Twitter users asking whether he should unload 10% of his stake in Tesla and pledging to abide by the vote’s results. Mr. Musk framed the potential sale as a way to cover any taxes he would need to pay if lawmakers imposed new taxes on unrealized capital gains. Mr. Musk began selling billions of dollars worth of stock a few days after his tweet.
His brother, Kimbal Musk, sold 88,500 shares one day before Mr. Musk tweeted about the potential sales of his own. Tesla shares fell sharply in the wake of Mr. Musk’s poll—58% of voters said he should sell—indicating the tweet was viewed as negative news.
‘Enforcement 40’ for 2020
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