On July 17, Senator Elizabeth Warren referred to as on the U.S. Securities and Change Fee (SEC) to provoke investigations into two corporations led by Elon Musk, particularly Tesla and Twitter, on account of potential authorized and moral points
Warren started by reiterating considerations that she despatched to Tesla in December 2022, all of which concern Musk’s twin management roles at Tesla and Twitter.
Warren alleged that, following Musk’s acquisition of Twitter, he presumably misused Tesla assets by transferring over 50 workers from Tesla to Twitter. All through her letter to the SEC, she steered that worker transfers might have concerned prices which might be related to buyers and mentioned that the motion may very well be a violation of state and federal regulation.
She additionally steered that conflicts of curiosity might come up round promotion. Musk might conceivably increase Tesla in Twitter’s algorithms or present Tesla with free promoting. Alternately, Twitter might settle for commercials from competing car corporations, incomes speedy income at a price to Tesla buyers, Warren mentioned.
Warren moreover famous that Tesla buyers have written an open letter criticizing Musk’s concentrate on non-Tesla ventures and have demanded a management succession plan. She added that Musk’s current hiring of Linda Yaccarino as CEO of Twitter doesn’t take away any battle of curiosity on account of his continued function as CTO of Twitter.
The senator additional noticed that Musk has appointed pals and family to Tesla board positions and famous different indicators that the board typically lacks independence.
She named a number of areas of securities regulation underneath which the SEC might doubtlessly start an investigation, most of which concern Tesla’s failure to reveal the above points.
Musk, Warren are each targeted on crypto
Tesla is a Bitcoin investor and holds 10,725 BTC ($321.6 million), based mostly on some studies. The agency additionally accepts Dogecoin (DOGE) as fee for some merchandise.
Musk had additionally steered the mixing of Dogecoin with Twitter earlier than he took over the corporate, a proposal that has up to now resulted solely in a change to the corporate’s brand.
Warren, in the meantime, is understood for her anti-crypto stances. She has criticized cryptocurrency’s use in sanctions evasions and the drug commerce and has referred to as for investigations into Binance and different companies. She has additionally expressed direct opposition to cryptocurrency, infamously stating she is “constructing an anti-crypto military.”
The put up Elizabeth Warren asks SEC to analyze Elon Musk’s twin roles at Twitter and Tesla appeared first on CryptoSlate.