Elizabeth Warren Calls for SEC Investigation into Tesla and Elon Musk’s Twitter Takeover

Democratic Senator Elizabeth Warren is calling on the SEC to probe into possible violations of securities laws by Tesla and its board of directors concerning the actions of CEO Elon Musk. In a nine-page letter to SEC Chair Gary Gensler, Warren aired concerns over Musk’s Twitter takeover, highlighting potential “conflicts of interest, misappropriation of corporate assets, and other negative impacts to Tesla shareholders.”

These concerns arose after Musk led a $44 billion buyout of Twitter in December 2022, a deal that included $13 billion in debt. Musk reportedly sold a substantial portion of his Tesla shares to finance the acquisition, subsequently becoming CEO of Twitter, where he instigated numerous changes, significantly downsized the workforce, and enlisted Tesla and SpaceX employees to aid him.

Warren criticized the Tesla board’s “apparent lack of independence” from Musk and expressed concern that the transfer of Tesla employees to Twitter might constitute “possible violations of state and federal labor law.” Furthermore, she suggested that Tesla’s board failed to disclose to shareholders adequately how Tesla and Twitter might collaborate.

Recently, Musk installed Linda Yaccarino, formerly of Comcast’s NBCUniversal, as Twitter CEO, a move which has led to speculation that Twitter’s ailing advertising sector may recover. Despite this, Musk remains in control at Twitter as its CTO and executive chairman, which Warren believes could present potential conflicts of interest. Specifically, Musk might operate Twitter to enhance much-needed revenue, potentially favoring Tesla’s competitors, or run Twitter in a way that benefits Tesla, possibly through biased algorithms or free advertising.


Information for this briefing was found via the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Why This Gold Run Could Be Bigger | Roger Rosmus – Goliath Resources

Majors Don’t Want to Be Left Out of This Gold Run | Mike Bennett – Altamira Gold Corp

Gold Isn’t Slowing Down Anytime Soon!? | Terry Lynch – Power Metallic

Recommended

Sage Potash Outlines US$502 Million NPV For Flagship Sage Plains Project

Ontario MPP Removed From Caucus After Assault Charges

Related News

Twitter Inc: The Mods Must Be Crazy

With about two weeks left in his term, two days after an angry MAGA mob...

Saturday, January 9, 2021, 05:00:00 PM

Musk’s Federal Worker Ultimatum Backfires as Agencies Assert Authority

Top national security agencies have defied Elon Musk’s bid to force federal workers to justify...

Monday, February 24, 2025, 07:33:30 AM

Elon Musk Plays Twitter God, Plans To Reactivate Banned Accounts

Elon Musk intends to reinstate nearly all previously suspended Twitter accounts. In a poll where...

Friday, November 25, 2022, 04:03:00 PM

Mark Zuckerberg Is Ready to Move On from Elon Musk Fight

Meta Platforms (Nasdaq: META) CEO Mark Zuckerberg has called for an end to the ongoing...

Monday, August 14, 2023, 07:59:53 AM

Bitcoin Jumps After Tesla Begins Accepting Crypto as Payment for Cars

The price of bitcoin rose by nearly 5% to above $55,000 on Wednesday, after Elon...

Saturday, March 27, 2021, 04:47:00 PM