Senator Elizabeth Warren of Massachusetts, a member of the Democratic Party, has called for a thorough investigation into Tesla and its potential conflicts of interest following CEO Elon Musk’s acquisition of Twitter last year.
In a letter addressed to U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler on Monday, Warren requested an investigation into Tesla and its disclosures regarding how the company’s board is managing potential conflicts arising from Elon Musk’s dual role as CEO of both Tesla and Twitter.
Warren expressed concerns about Musk’s actions since acquiring Twitter and becoming its CEO while still retaining his role as CEO of Tesla. She raised concerns about potential conflicts of interest, misappropriation of corporate assets, and negative impacts on Tesla shareholders.
In a tweet, Warren stated, “Tesla’s board has a legal obligation to serve its shareholders. I’m urging @SECGov to investigate.”
Warren’s office did not provide further information in response to a request for details. The Hill reached out to Tesla for comment, and CNBC was the first to report on Warren’s letter.
Today’s letter from Warren echoes concerns she raised last year in a letter to the chairman of Tesla’s board, where she expressed her worry that the board had failed to fulfill its legal duty. Warren noted that the board has thus far refused to provide answers.
“Despite recent and repeated calls from investors to address these actions, the Board appears to have failed to uphold its legal duty to ensure that Mr. Musk acts in the best interest of Tesla,” Warren wrote in the letter.
Warren added, “Mr. Musk’s personal wealth — and his personal relationships with Board members — do not shield him or the Tesla Board from meeting basic SEC governance and disclosure rules.”
Last year, Musk faced criticism for selling billions of dollars worth of Tesla stock as he pursued the acquisition of Twitter for $44 billion, according to SEC filings.
Musk’s management of the platform has drawn further criticism from lawmakers, particularly from the left. Since taking ownership of Twitter, Musk has made controversial decisions, such as removing top executives, implementing mass layoffs, and introducing the Twitter Blue program, which requires users to pay a monthly subscription fee for a verification checkmark.
Earlier, Musk mentioned that Twitter has experienced a nearly 50 percent drop in advertising revenue and is dealing with significant debt, despite claiming in April that the platform was “roughly breaking even.”
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