Infotech

Elon Musk’s brother suspected of insider trading



Posted on Nov 9, 2021, 7:57 PMUpdated Nov 9, 2021, 8:29 PM

The SEC had previously pinned Tesla for the lack of oversight of Elon Musk’s tweets. She may not appreciate the latest revelations on the stock market transactions of her brother, Kimbal. According to a statement made after the market closed, the latter, also a member of the company’s board of directors, sold 88,500 Tesla shares on November 5, in other words Friday.

The problem is that on the 6th, Elon Musk launched his now famous Twitter poll, in which he offered his “followers” ​​to express themselves on a sale of 10% of his stake in Tesla. “Lately, we tend to see unrealized capital gains as a way to avoid tax. I therefore propose to sell 10% of my Tesla shares. Do you agree with this proposition? “

Super-tax on the super-rich

At a time when the debate on a super-tax on the super-rich agitates the United States, 3.5 million tweeters (out of the 62.8 million followers of Elon Musk) have expressed themselves. 58% of them voted “yes”. The prospect of a massive stock sell-off caused Tesla’s stock market price to drop nearly 5% on Monday, the biggest drop in five months. The boss of Tesla had indicated that he “would respect the results of this poll, whatever the result”.

Elon Musk is the richest man in the world today, thanks to his 21% stake in Tesla. A sale of 10% of its shares could net it more than $ 20 billion (20.8 during last Friday).

Sales of Kimbal Musk were executed at an average price of $ 1,229.91 per share through JPMorgan. That is about $ 109 million in total. The securities sold represented around 15% of Kimbal’s stake, not including options.

More than 10% drop

The fall intensified on Tuesday. Tesla shares tumbled more than 10% at the end of the European session, around 1,040 dollars. It signs its worst performance over two days since March.

Kimbal, 49, attended culinary school and settled in Brooklyn where he has the image of a restaurateur concerned with sustainable development. Often wearing a cowboy hat, he’s CEO of Kitchen Restaurant and co-founder of Square Roots Urban Growers, a community of urban farms that grow plants like rocket in spaces that include old containers. He has been a member of the Tesla Board of Directors since April 2004.

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