Senator Elizabeth Warren is pressing the SEC to investigate the Twitter and Tesla tie-in.
US Senator Elizabeth Warren made a call to the SEC today asking it to investigate the link between Twitter and Tesla. The fact that both companies are owned by Elon Musk was the main subject of the research request.
SEC investigation request for Tesla and Twitter, owned by Elon Musk
Senator Elizabeth Warren has urged the SEC to investigate Tesla and CEO Elon Musk for possible “conflicts of interest, misappropriation of corporate assets, and other adverse effects on Tesla shareholders.” Warren’s nine-page letter, obtained by CNBC, expressed concerns from Tesla’s board about Musk’s takeover of Twitter.
Warren notes that the Tesla board’s lack of “apparent independence” from Musk, combined with inaction, raises questions about possible violations of securities laws and stock market rules that fall under the jurisdiction of the SEC. Warren also echoes concerns previously expressed about Tesla’s acquisition of Twitter.
In the letter, Warren also states that taking Tesla employees on Twitter could involve “possible violations of state and federal labor laws,” and that the Tesla board has failed to properly inform shareholders of the ways the two companies are cooperating.
