Massachusetts Senator Elizabeth Warren is questioning whether Tesla's board is protecting the electric car company's shareholders in the aftermath of CEO Elon Musk's $44 billion purchase of Twitter.
Tesla directors are legally bound to look after the interests of the company, workers and shareholders, the Democratic lawmaker wrote Monday in a
to Robyn Denholm, chairman of the Tesla board. Yet Musk's steps as the new Twitter CEO raise"questions about possible violations of securities or other laws," Warren added. in market value this year amid questions about Musk's judgement and commitment to the electric-vehicle maker.
The senator called on the board to account for how it was"dealing with conflicts of interest, misappropriation of corporate assets and other actions by Mr. Musk that appear not to be in the best interest of Tesla and its shareholders." Those steps include pulling Tesla engineers and other key staff at the automaker to work at Twitter, Warren noted. She also cited the potential for conflicts of interest, given that Twitter relies on ad revenue from Tesla competitors such as Audi and Ford.
"Musk may decide to run the company to maximize badly-needed revenue, even if that includes great deals for Tesla's competitors and potential injury to Tesla," she stated."Musk could decide he is personally better served if Tesla overpays Twitter for advertising or pays up front to give Twitter access to much-needed cash."
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