Senator Elizabeth Warren calls on SEC to probe Tesla for alleged conflicts of interest on Twitter

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Sen. Elizabeth Warren, D-Mass., is urging the Securities and Exchange Commission to investigate Tesla’s board of directors over what she called “apparent conflicts of interest” involving Tesla chief executive officer Elon Musk’s “dual roles” following his purchase of Twitter. File Photo by Bonnie Cash/UPI

Sen. Elizabeth Warren, D-Mass., is calling on the Securities and Exchange Commission (SEC) to conduct an investigation into Tesla’s board of directors due to alleged conflicts of interest arising from CEO Elon Musk’s simultaneous roles as head of Tesla and owner of Twitter. The senator believes that the board has failed to effectively address these conflicts, which poses a risk to Tesla shareholders. The SEC’s intervention is necessary to ensure compliance with securities laws. (Image Source: Bonnie Cash/UPI)

July 17 (UPI) — Sen. Elizabeth Warren, D-Mass., has requested the Securities and Exchange Commission (SEC) to launch an investigation into Tesla’s board of directors over potential conflicts of interest resulting from CEO Elon Musk’s purchase of Twitter last year. Warren believes that Tesla’s board has not adequately managed these conflicts since Musk’s acquisition of the social media platform. In a tweet, she emphasized that the board has a legal responsibility to serve the best interests of shareholders, and she urges the SEC to take action.

In a nine-page letter, which can be found here, Warren further expresses concerns about the negative impact on Tesla shareholders due to the alleged misappropriation of corporate assets. There are claims that Tesla funds and employees were redirected towards Musk’s $44 billion purchase of Twitter. These actions and the board’s failure to disclose potential risks raise questions regarding Tesla’s compliance with SEC regulations.

Warren insists that an investigation is necessary to ensure that Musk’s actions and the board’s conduct do not violate securities laws. This is not the first time Warren has criticized Musk, as she previously scrutinized the amount of taxes he paid when he was named Time magazine’s “Person of the Year.” Musk responded by stating that he would pay over $11 billion in taxes, claiming it to be the highest amount paid by any American in history. As of now, Musk has not responded to Warren’s letter to the SEC, which also questions his decision to appoint a new CEO for Twitter.

While Linda Yaccarino has taken on the role of Twitter’s new CEO, it is reported that Musk will retain significant control over the company and continue overseeing its core functions. Warren warns that Musk’s mismanagement of Twitter could potentially harm Tesla’s long-term value. She emphasizes that Tesla is a publicly owned company and both Musk and the board have responsibilities to shareholders and the public, which includes adhering to basic SEC governance and disclosure rules.

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