US Senator Warren has set her sights on Musk: Calls for Tesla to investigate whether it is abusing company resources
Democratic Senator Elizabeth Warren of the United States has called on Tesla's board of directors to investigate whether CEO Elon Musk has abused company resources to support his other personal ventures. She pointed out that Musk transferred computer chips from Tesla to his social media company X and artificial intelligence enterprise xAI, which may constitute improper use of company resources and inevitable conflicts of interest. She has raised questions about the corporate governance and regulatory responsibilities of Tesla's board of directors, and is seeking more information to assess whether regulatory agencies such as the SEC need to intervene
On Thursday, August 8th, Eastern Time, U.S. Democratic Senator Elizabeth Warren called on Tesla's board of directors to investigate whether Elon Musk used Tesla's resources to benefit his personally operated other companies.
In a 10-page letter sent to Tesla's board chairman Robyn Denholm on Thursday, Warren pointed out that Musk's transfer of computer chips, originally belonging to Tesla, to his social media company X and artificial intelligence enterprise xAI, may involve improper use of company assets.
In June this year, Musk admitted that he had sent these chips to X and xAI companies. At that time, he stated that if he didn't do this, these processors would just be idle in the warehouse. However, Senator Warren questioned this behavior, suggesting that it may constitute "misuse of company resources," and pointed out that Musk's founding of xAI company itself may pose an "inevitable conflict of interest."
Warren also expressed concerns that Tesla's board of directors may have been negligent in corporate governance and highlighted the lack of sufficient oversight within the company. She requested more information to more accurately assess whether the Securities and Exchange Commission (SEC) or other regulatory agencies need to intervene in the investigation. Of course, she has previously expressed similar concerns and called for the SEC to investigate Tesla.
Warren is an American politician and former law professor who has served as a senior U.S. Senator from Massachusetts since 2013. Warren is a member of the Democratic Party and is considered a progressive. During her tenure in the Senate, Warren has been dedicated to protecting consumer rights, promoting fair economic opportunities, and strengthening the social safety net. Warren was a candidate in the 2020 Democratic presidential primaries, ultimately finishing third