Elizabeth Warren urges SEC to investigate Tesla over Twitter ties and corporate governance

Sen. Elizabeth Warren, D-Mass., sent a letter urging the U.S. Securities and Exchange Commission to investigate Tesla and its board of directors over possible “conflicts of interest, misappropriation of corporate assets, and other negative impacts to Tesla shareholders” related to CEO Elon Musk’s Twitter takeover.In the letter sent to SEC Chair Gary Gensler on Monday, Warren wrote that the Tesla board’s “apparent lack of independence” from Musk, combined with “inaction and incomplete disclosures, raise questions about possible violations of securities laws and exchange rules which fall under SEC’s jurisdiction.”The nine-page letter, first obtained by CNBC, reiterates concerns Warren had raised in earlier correspondence to Tesla Chair Robyn Denholm in December 2022, after Musk led a $44 billion buyout of Twitter. The take-private deal included $13 billion in debt, and Musk reportedly sold billions of dollars worth of his Tesla shares to finance the transaction.A spokesperson for the SEC’s Office of Public Affairs said Gensler “will respond to Members of Congress directly.”Musk appointed himself CEO of Twitter after the deal closed and quickly made sweeping changes to the social network, while cutting more than three-quarters of the staff at the company and authorizing teams of employees from Tesla and SpaceX to assist him there.Citing CNBC’s reporting on the matter, Warren wrote
Read More