The SEC is reportedly questioning whether Elon Musk told Kimbal Musk about the upcoming Twitter poll before the latter sold his shares. Kimbal Musk also reportedly sold $25 million in Tesla shares in February 2021 at the price of $852 per share, the highest price until October.
The disclosures for Kimbal Musk's share sales didn't say he used a 10b5-1 plan to sell, according to the Journal. Rule 10b5-1 under the Securities Exchange Act of 1934 allows major shareholders of a company to sell a predetermined number of their shares at a predetermined time to avoid insider trading accusations.
The SEC declined to comment. Tesla doesn't operate a public relations department to field requests for comment, but Elon Musk reportedly told the Financial Times Thursday that his brother had "no idea" he would do the Twitter poll.