Economy Kimball Musk (Elon's brother) sold $109 million in Tesla shares the day before Elon tanked the stock

[Ophydian]

This is one reason why the whole thing is rigged to a large extent.

A few years ago, before the electric truck maker Rivin blew up, I felt strongly they would make it big but I could not buy any shares because there was no IPO. But Amazon/Bezos and other institutional investors were able to buy stock in the company.

You either sell A shares to investors who will drop 10’s of millions with minimal share dilution or you sell shares to the public and hope there is enough interest. A company like Rivin needed capital investment.

 

[tenniswhiz]

- 1 day before Elon tanked Tesla stock by putting up his poll asking the general public if he should sell 10% of his stock, his brother Kimball unloaded $109 million of his (Kimball's) Tesla stock.

Elon Musk’s brother sold $109 million in Tesla shares before poll
https://www.latimes.com/business/te...her-sold-109-million-tesla-shares-before-poll

Elon Musk’s Brother Sold $109 Million in Tesla Stock Ahead of Poll
https://www.bloomberg.com/news/arti...sold-109-million-in-tesla-stock-ahead-of-poll

Elon Musk’s brother sold $109 million in Tesla stock ahead of poll
https://www.seattletimes.com/busine...old-109-million-in-tesla-stock-ahead-of-poll/

Kimbal Musk sold Tesla shares a day before his brother, Chief Executive Officer Elon Musk, launched his now infamous Twitter poll.

Kimbal, a Tesla board member, sold 88,500 Tesla shares on Nov. 5, according to a filing that day after the market close. He sold the stake at an average price of $1,229.91 per share via JPMorgan, the filing says. That amounts to about $109 million. The shares sold represented about 15% of Kimbal’s equity stake, excluding options.

Elon Musk proposed selling 10% of his Tesla stock on Twitter Saturday, saying he would “abide by the results of this poll, whichever way it goes.” His legion of followers decided the world’s richest person should sell a stake worth about $21 billion. Tesla shares slumped after the poll, closing down the most in five months.

Tesla shares fell nearly 12% on Tuesday, in its worst two-day performance since March, after Insider reported Michael Burry said in a tweet that Elon Musk may want to sell shares to cover personal debts.


----

How is this not insider trading?

So he sells the stock when it is high, knowing Elon was going to create that poll and likely tank the stock. After the stock tanks, he has the option of buying it back at much less than what he offloaded it for.

“knowing Elon was going to create that poll”

You assume that, but there is absolutely no way to prove it.

Furthermore, Musk’s “influence” over certain types of internet residents is not normal. They follow him and obsess over him, and create situations where there is no justification for such things as TSLA stock price, or for the prices of Dogecoin or Shiba Inu coin, other than Elon.

 

[MicroBrew]

“knowing Elon was going to create that poll”

You assume that, but there is absolutely no way to prove it.

Furthermore, Musk’s “influence” over certain types of internet residents is not normal. They follow him and obsess over him, and create situations where there is no justification for such things as TSLA stock price, or for the prices of Dogecoin or Shiba Inu coin, other than Elon.

You really think his brother , who is a Tesla board member, did not know Elon was going to create the poll?
Don't you think it is might coincidentall that the brother unloads $109 million of his stock the day before the Poll?

 

[MicroBrew]

You either sell A shares to investors who will drop 10’s of millions with minimal share dilution or you sell shares to the public and hope there is enough interest. A company like Rivin needed capital investment.

Yes they needed capital, and if they had offered the general public the opportunity to buy stock, they would have raked in money. Lots of people with ideas use crowdfunding to launch their business.

 

[xHeadx]

Matha Stewart got punished for it.

But I am sure a lot of 1%ers do it all the time and get away with it.

 

[Broken arrow]

Who knows, maybee it is somewhat like how the IRS doesn't go after the big fish because it is costly and lengthy battle to win, so they go after mid-tier and smaller fish ?

With insider trading, it could be that the SEC / Gov. only goes after blatantly obvious cases and folks who weren't cunning enough to hide their insider trading in a smart way.

I think the Pelosi insider trading is blatant. She bought a ton of Tesla stock a couple days before the gov announced they were going to an electric fleet….. her salary is about $200k but she is a multi millionaire

 

[ElKarlo]

Matha Stewart got punished for it.

But I am sure a lot of 1%ers do it all the time and get away with it.

I would say order flow is a form of insider trading, yet it is legally bought and sold

 

[Goonerview]

This is Kimball Musk. The phrase "all hat and no cattle" comes to mind.

Well, he has upwards of $100m, I think he could buy a few cows if he wanted to!

 

[Day Drinking]

You either sell A shares to investors who will drop 10’s of millions with minimal share dilution or you sell shares to the public and hope there is enough interest. A company like Rivin needed capital investment.

I think he means the rule that normal people aren't allowed to buy an IPO, only "sophisticated" investors.

 

[CaptHANDSUP]

Unless we fundamentally change the economic system from the ground up we will continue to have a lack of social mobility and increasing wealth inequality.