(ConservativeUnit)- Nancy Pelosi’s husband sure does think there’s a bright future in electric vehicles during Democratic President Joe Biden’s time in office.
FOX Business reported on Monday that the Speaker of the House’s husband, Paul, invested $1 million in Tesla Inc. stock. Paul Pelosi likely has some inside information as it relates to electric vehicles and other environmentally-friendly vehicles.
Biden is expected to try to beef up the industry by providing incentives and tax credits to companies that shift away from using fossil fuels. This will likely hit the auto industry, of course, and electric vehicle companies such as Tesla may benefit immensely.
Paul Pelosi runs a San Francisco-based real estate and venture capital investment/consulting firm. He actually didn’t break any laws by making the investment. The spouses of all Congress members are allowed to buy stock in any company, even if their spouses may have a significant role in the outcome of that industry.
The one exception, under the STOCK Act, is the investor may not use information that isn’t public to make their decisions. In other words, Paul Pelosi couldn’t have used information from Nancy about pending regulations or legislation that hasn’t been publicly introduced yet.
A spokesman for Nancy Pelosi said in a statement on Monday:
“The disclosure forms clearly indicate these investments were made by Mr. Paul Pelosi, not the Speaker.”
According to that financial disclosure, which is dated January 21, Paul Pelosi bought a total of 25 call options. They cost between $500,000 and $1 million. By purchasing these options on December 22, Paul had the right to purchase as much as 2,500 shares in Tesla at $500 each.
He isn’t required to make the purchases, but the options expire on March 18, 2022.
As of Friday, Tesla shares were at $846.64 each. This means they are above what’s known as the strike price. It also means that Paul Pelosi can exercise those options as long as the company’s stock price is above $500.
Paul Pelosi didn’t respond to a comment request from FOX Business.
While investments like this are legal, they are questionable, according to some. As Aaron Hill, a University of Florida professor of management, told FOX Business:
“The problem is there are a lot of things that any congressperson could do behind the scenes to positively influence Tesla [shares], such as stalling legislation and putting forth legislation. A lot of this is just documented in committee meetings, so it really raises the specter of double-dealing or certainly conflict of interest.”
At one point recently, the Department of Justice was investigating four Senators for stock trades they made. Republican Senators Richard Burr (North Carolina) and Jim Inhofe (Oklahoma), Democratic Senator Dianne Feinstein (California) and former Republican Senator Kelly Loeffler (Georgia) were all under investigation by the DOJ.
Either the senators themselves or their spouses sold off investments just before the S&P 500 plummeted 34% in February and March, anticipating the damage the coronavirus pandemic would cause on the economy.
The DOJ has since dropped their investigation, though. Still, it should be concerning that this goes on. As Hill said:
“As a nation, we should really be concerned with this. There’s enough political vitriol out there, and this is just one more thing to potentially divide our country. This is easily eliminable.”