Elizabeth Warren Raises Concerns Over Tesla’s Use Of Social Media: Report

Key Points:

• US Senator Elizabeth Warren has written a letter to the SEC requesting an investigation into Tesla’s connection to Twitter.
• Warren raises concerns about potential conflicts of interest, misappropriation of corporate assets, and negative impacts to Tesla shareholders.
• The letter calls for a probe into Tesla’s board of directors regarding the lack of independence from Musk and possible violations of securities laws and exchange rules.

US Senator Elizabeth Warren requests SEC to investigate Tesla’s connection to Twitter, raising concerns about conflicts of interest and possible violations of securities laws.

US Senator Elizabeth Warren has sent a letter to the US Securities and Exchange Commission (SEC) to request an investigation into Elon Musk’s Tesla’s connection to Twitter. The letter raises concerns over potential conflicts of interest, misappropriation of corporate assets, and negative impacts to Tesla shareholders. Warren specifically calls for a probe into Tesla’s board of directors regarding the lack of independence from Musk and possible violations of securities laws and exchange rules.

The nine-page letter was sent on Monday to SEC chair Gary Gensler. Warren’s concerns echo similar ones she expressed to Tesla Chair Robyn Denholm in 2022. She notes that the inaction and incomplete disclosures raise questions about possible violations of securities laws and exchange rules, which fall under the SEC’s jurisdiction.

Warren expressed concern about Tesla’s use of employees from Tesla and SpaceX to aid the social media platform, stating that it could represent possible violations of state and federal labor laws. She also stated that Tesla had failed to properly inform shareholders of how the two companies would work in connection.

Although a new Twitter CEO has been appointed, Warren believes that Musk still maintains control as the CTO and executive chairman of Tesla. Thus, maintaining the conflict of interest.

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