On July 17, Senator Elizabeth Warren called on the U.S. Securities and Exchange Commission (SEC) to open an investigation into two companies led by Elon Musk, namely Tesla and Twitter, for possible legal and ethical issues. asked to start.
Warren first reiterated the concerns he sent to Tesla in December 2022, all of which related to Musk’s dual leadership role at Tesla and Twitter.
Warren alleged that Musk may have misused Tesla’s resources by moving more than 50 employees from Tesla to Twitter after he bought Twitter.all over her Letter to SECIt said the employee move may have had investor-related costs, and said the move could violate state and federal law.
He also suggested there could be conflicts of interest regarding promotions. Mr. Musk could possibly power Tesla with Twitter’s algorithm or give Tesla free advertising. Alternatively, Twitter could accept ads from competing auto companies and generate immediate revenue at the expense of Tesla investors, Warren said.
Warren also noted that Tesla investors have written an open letter criticizing Musk’s focus on ventures outside of Tesla and demanding a succession plan for management. He added that Musk’s recent hiring of Linda Yaccarino as Twitter’s CEO does not preclude a conflict of interest, as she will continue to serve as Twitter’s CTO.
The senator also noted that Musk has appointed friends and relatives to positions on Tesla’s board of directors, and cited other signs that the board generally lacks independence. .
She named several areas of securities law the SEC could initiate investigations into, most of which relate to Tesla’s failure to disclose the above issues.
Musk and Warren both focus on cryptocurrencies
Tesla is a Bitcoin investor, holding 10,725 BTC ($321.6 million). some reports. The company also accepts Dogecoin (DOGE) as payment for some products.
Musk also proposed a Dogecoin-Twitter merger before taking over the company, but the proposal has so far only changed the company’s logo.
Warren, on the other hand, is known for his anti-crypto stance. He has criticized the use of cryptocurrencies in sanctions evasion and drug trafficking, and has called for an investigation into Binance and other companies. She also stated that she is infamously “organizing an anti-crypto army,” and that she is staunchly opposed to cryptocurrencies.
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