Massachusetts Democratic Senator Elizabeth Warren on Monday sent a letter to the Tesla Inc. board questioning whether Chief Executive Officer Elon Musk is meeting his legal obligations to the company and its shareholders following his purchase of Twitter Inc.
(Bloomberg) — Massachusetts Democratic Senator Elizabeth Warren on Monday sent a letter to the Tesla Inc. board questioning whether Chief Executive Officer Elon Musk is meeting his legal obligations to the company and its shareholders following his purchase of Twitter Inc.
Warren wrote that Musk’s actions as the new CEO of Twitter have “raised questions about possible violations of securities or other laws.”
“Despite widespread concerns about Mr. Musk’s acquisition of Twitter while serving as CEO of Tesla, it remains unclear whether the Tesla board – which has key decision-making authority within the company – is adequately governing the company or if it has established clear rules and policies to address the risks to Tesla posed by Mr. Musk’s dual roles,” Warren wrote.
Musk has pulled Tesla engineers to help out at Twitter since he bought the company for $44 billion earlier this year. Warren’s letter also raised concerns about whether there is a conflict of interest between his roles at Tesla and Twitter, particularly because Tesla competitors like Audi AG advertise on Twitter’s platform.
Musk tweeted later that the US has “definitely been harmed” by having Warren as a senator.
The New York Times reported earlier on Warren’s letter to the Tesla board.
(Updates with Musk tweet in 5th paragraph.)
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