Elizabeth Warren asks SEC to investigate Tesla | CNN Business

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Democratic Sen. Elizabeth Warren asked the SEC to investigate Tesla and its board of directors to determine whether they violated securities laws after CEO Elon Musk took over Twitter last year

In a nine-page letter to the Securities and Exchange Commission Monday, the Massachusetts senator said Elon Musk’s long list of responsibilities, from owning Twitter to remaining Tesla’s CEO, “have raised concerns about conflicts of interest, misappropriation of corporate assets, and other negative impacts to Tesla shareholders.” Warren added that the electric car company’s board failed to ensure it has acted in shareholders’ best interests.

Warren noted Twitter relies on advertising from Tesla’s direct competitors, such as Audi\n \n and GM\n \n , creating a conflict of interest as the platform is trying to shore up funds. A group of 17 major Tesla investors in April wrote an open letter to the company’s board complaining Musk is just too distracted to run the company. “Tesla is publicly owned, and Mr. Musk and the Board have responsibilities to shareholders and the public in their management of the company,” Warren wrote. “Mr.

 

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