Elizabeth Warren, the US senator, has called on the Securities and Exchange Commission (SEC) to investigate Elon Musk and his dual leadership roles at Tesla and Twitter. In a letter to the SEC, Warren expressed concerns over potential legal and ethical issues arising from Musk’s acquisition of Twitter and his transfer of over 50 employees from Tesla to the social media platform.
Warren alleged that Musk may have misused Tesla’s resources by using company employees for his personal ventures at Twitter. She suggested that this action could be a violation of state and federal law, as it may involve costs that are relevant to Tesla investors. Additionally, Warren raised concerns about conflicts of interest, highlighting the possibility of Musk promoting Tesla in Twitter’s algorithms or Twitter accepting advertisements from competing vehicle companies, which could harm Tesla investors.
Moreover, the senator referred to an open letter written by Tesla investors, criticizing Musk’s focus on non-Tesla ventures and demanding a leadership succession plan. She argued that Musk’s recent hiring of Linda Yaccarino as CEO of Twitter does not address the conflict of interest, as he still holds the role of CTO at the social media company. Warren also pointed out that Musk has appointed friends and relatives to Tesla board positions, suggesting a lack of independence within the board.
Warren identified several areas of securities law under which the SEC could pursue an investigation into Tesla, primarily focusing on the company’s failure to disclose the aforementioned issues. She emphasized the need for transparency and accountability in Musk’s leadership roles at both Tesla and Twitter.
Interestingly, both Musk and Warren have shown contrasting views on cryptocurrency. Tesla is an investor in Bitcoin, holding 10,725 BTC, and also accepts Dogecoin as a form of payment. Musk had previously suggested integrating Dogecoin with Twitter. In contrast, Warren is known for her anti-crypto stance and has called for investigations into cryptocurrency firms. She has openly expressed opposition to cryptocurrency and has been labeled as building an “anti-crypto army.”
Elizabeth Warren’s call for an SEC investigation into Elon Musk’s dual roles at Twitter and Tesla raises important questions about potential conflicts of interest and misuse of company resources. The outcome of such an investigation could have significant implications for Musk’s leadership positions and the transparency of Tesla’s operations.