Democratic Massachusetts Sen. Elizabeth Warren sent a letter Monday pressing the Securities and Exchange Commission (SEC) to investigate Tesla regarding its CEO Elon Musk taking over Twitter.
The letter demands an investigation into Tesla and its board of directors over potential “conflicts of interest, misappropriation of corporate assets, and other negative impacts to Tesla shareholders” regarding Musk purchasing and running Twitter since October. The letter further alleges that Musk’s role at Twitter could adversely affect Tesla shareholders, despite Musk recently stepping down as CEO of the social media company.
“As the owner of Twitter, Mr. Musk could decide to run the company to maximize badly-needed revenue, even if that includes great deals for Tesla’s competitors and potential injury to Tesla,” Warren’s letter asserts. Alternatively, “Musk could run Twitter to benefit Tesla through favorable algorithms or free advertising.” (RELATED: ‘Will You Chip In $10?’ — Elizabeth Warren Accuses Elon Musk Of ‘Freeloading’ As She Fundraises Off Twitter Spat)
JUST IN: 🇺🇸 Senator Elizabeth Warren requests SEC investigation into Elon Musk’s Tesla over Twitter ties, alleging misappropriating assets and conflicts of interest. pic.twitter.com/J3Sw462gbd
— Watcher.Guru (@WatcherGuru) July 17, 2023
Further, the letter cites reporting that Musk enlisted over 50 Tesla employees to work on his Twitter acquisition.
“This use of Tesla employees raised obvious questions about whether Mr. Musk appropriated resources from a publicly traded firm, Tesla, to benefit his own private company, Twitter,” Warren’s letter asserts.
As a public company, Tesla is required to have an independent board representing investors, according to CNN Business. However, Tesla’s board may not be independent, according to the letter, which states Musk’s brother Kimball Musk and close friends are board members.
Although Musk stepped down and enlisted NBCUniversal advertising executive Linda Yaccarino as Twitter CEO, this was insufficient “to address the concerns to Tesla and its shareholders related to his dual role,” Warren’s letter states, adding that “should Mr. Musk change his mind about stepping down as CEO, there is nothing to stop him from firing Ms. Yaccarino and returning to the helm.”
Warren and Tesla did not immediately respond to the Daily Caller News Foundation’s request for comment.
“Chair Gensler will respond to Members of Congress directly, rather than through the media,” an SEC spokesperson told the DCNF.
Twitter responded to the DCNF’s request for comment with a poop emoji, its automatic response to all press emails.
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