Image: Baron Funds
In a letter on Sunday, U.S. Senator Elizabeth Warren (D-Mass) wrote to Tesla’s board chair Robyn Denholm saying that CEO Elon Musk has failed to meet legal duties following his purchase of Twitter, according to a report from CNBC.
Warren posited that Musk’s use of Tesla employees at Twitter could represent major conflicts of interest, since he was using employees of the publicly owned automaker to work at the now privately owned social media company.
“One key element of those duties is that every Board of Directors of a company with multiple shareholders – especially publicly traded companies – is responsible for ensuring that a controlling shareholder (especially one who is also a Chief Executive Officer, or CEO) does not treat the company as a private plaything,” Warren wrote in the letter.
Elon Musk Calls Elizabeth Warren ‘Senator Karen’ in Twitter Fight https://t.co/RSDXUjN5sQ
— TeslaNorth.com (@RealTeslaNorth) December 15, 2021
She also questioned whether Musk could be funnelling money into Twitter through Tesla, which would be misappropriating shareholder funds.
“This use of Tesla employees raises obvious questions about whether Mr. Musk is appropriating resources from a publicly traded firm, Tesla, to benefit his own private company, Twitter,” Warren added.
Musk and Warren have previously taken aim at each other on Twitter, after the U.S. lawmaker pointed out Musk and Tesla’s avoidance of taxes and increased wealth since the start of the COVID-19 pandemic.
Additionally, the news comes just a day after Musk announced plans to resign as CEO of Twitter, following a poll on the platform asking if he should step down at the company.
