The SEC has long enforced -- very publicly -- its rules that provide as follows: when a closely related group (even separated by distance and time) coordinates (what might otherwise look like unrelated) market sales. . . and then it turns out that material adverse information was undisclosed by one member of the company-controlling group, and the others avoided losses, or profited thereby. . .
It will pursue that line of inquiry. Not remotely a surprise, there (ask Mike Milken, or "The Raj").
And we said so, in November 2021, at another property of ours. The SEC is entitled to know if Elon spoke to, WhatsApp'ed with or otherwise signaled his brother, in the few days leading up to his now infamous weekend poll, on Twitter. . . that led to the sale of $15 billion of his stock, and dropped the NASDAQ price of the stock almost immediately.
But his brother. . . (miraculously!) got ~$100 million off the table, before all of that. Days before. Just... days before.
Elon and his bro, may both be in a very-cute, matching set... of orange jumpsuits, in about three years.
We shall see. Great reporting -- but you knew (from me) it was headed this way, over four months ago:
. . .The Securities and Exchange Commission is investigating whether recent stock sales by Tesla Inc. Chief Executive Elon Musk and his brother violated insider trading rules, according to people familiar with the matter.
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. . .
And. . . Elon's hyper-testosterone-infused stance with the SEC, of late. . . likely means he knows. . . he's caught.
Just my $0.02.
Your mileage may vary -- but it probably. . . shouldn't -- snowing here, again. Yikes. . . grinning.
नमस्ते
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