Elizabeth Warren is concerned Elon Musk is treating Tesla like a 'plaything' amid his Twitter takeover
to Tesla's board on Sunday questioning whether Elon Musk's Twitter acquisition had led the billionaire to misappropriate the electric-car maker's resources and created"unavoidable conflicts of interest."
Warren said Musk's Twitter takeover has"raised questions about possible violations of securities or other laws, including whether Mr. Musk is funneling Tesla resources into Twitter, a potentially 'improper diversion of resources that might impact Tesla's sales and earnings' and could result in 'delays in programs at Tesla,'"The letter said those misappropriated resources could include labor, like software engineers and senior executives.
The senator warned Tesla's board members that it is their job to ensure"that a controlling shareholder does not treat the company as a private plaything." Warren cited reports that Musk hasto assist in his Twitter takeover, saying it could violate the billionaire's"legal duty of loyalty to Tesla." In her letter, Warren pointed out that Musk's ownership of Twitter could cause a conflict of interest as the billionaire could either scrap ad deals for Tesla competitors and boost the electric-car maker's posts, or give deals to rivals to Tesla's detriment. She also noted Musk could funnel Tesla's funds into Twitter by allowing the car company to overpay for ads on the platform.
A spokesperson for Warren directed Insider to the letter when reached for comment. Musk and a Tesla spokesperson did not respond to a request for comment ahead of publication.over whether he should stay on as the CEO of Twitter, and 57% of the over 17 million users that voted in the survey said the billionaire should step down. It is unclear whether Musk will honor the poll and resign.
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