The United States Securities and Exchange Commission (SEC) is investigating whether recent stock sales by Tesla chief executive Elon Musk and his brother Kimbal Musk "violated insider trading rules", the Wall Street Journal reported on Thursday (February 24), citing sources familiar with the matter, Report informs, citing foreign media.
According to the report, the investigation began last year after Mr Kimbal Musk sold shares of the electric car maker valued at US$108 million (S$146 million), a day before Mr Elon Musk polled Twitter users asking whether he should offload 10% of his stake in Tesla.
Kimbal Musk did not know about the Twitter poll ahead of it, Elon Musk told the Financial Times in an e-mail, adding that his lawyers were "aware" of the poll.
An earlier settlement with the SEC required his public statements about the company's finances and other topics to be vetted by its legal counsel.
The SEC issued a subpoena on November 16, ten days after Mr Elon Musk's poll, seeking information related to some financial data.
The potential probe would escalate Mr Elon Musk's battle with regulators as they scrutinise his social media posts and Tesla's treatment of workers, including accusations of discrimination.