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Well-known U.S. Senator Warren has targeted Musk: asking Tesla to investigate whether he abused company resources

2024-08-10

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On Thursday, August 8, Eastern Time, U.S. Democratic Senator Elizabeth Warren asked Tesla's board of directors to investigateWhether Musk used Tesla's resources to transfer benefits to other companies he personally runs.

She wrote in a 10-page letter sent Thursday to Tesla Chairman Robyn Denholm:Musk's transfer of computer chips that originally belonged to Tesla to his social media company X and artificial intelligence company xAI may involve improper use of company assets.

In June of this year, Musk admitted that he sent the chips to X and xAI. He said at the time that if he didn't do so, the processors would just sit idle in the warehouse. However, Senator Warren questioned this, saying that this behavior may have caused "abuse of company resources" and pointed out that Musk's founding of xAI itself may constitute an "inevitable conflict of interest."

Warren also worried that Tesla's board of directors may have been negligent in corporate governance and pointed out that the company lacked adequate supervision. She asked for more information to more accurately assess whether the Securities and Exchange Commission (SEC) or other regulators needed to intervene in the investigation. Of course, she had expressed similar concerns before and asked the SEC to investigate Tesla.

Warren is an American politician and former law professor who has served as the senior U.S. Senator from Massachusetts since 2013. Warren is a member of the Democratic Party and is considered a progressive. During his tenure in the Senate, Warren worked to protect consumer rights, fair economic opportunities, and the social safety net. Warren was a candidate in the 2020 Democratic presidential primary and ultimately came in third.