X owner Elon Musk (L), and Sen. Elizabeth Warren (D-MA).
Reuters
Sen. Elizabeth Warren, D-Mass., is asking the Tesla board if it’s looked into CEO Elon Musk’s usage of business resources to advantage his other endeavors, consistingof SpaceX and xAI.
“Tesla’s Board of Directors appears to be stoppingworking to satisfy its fiduciary responsibilities to Tesla’s investors by overlooking to address business CEO Elon Musk’s evident disputes of interest,” Warren composed in a 10-page letter to Tesla Chairwoman Robyn Denholm on Thursday. Musk likewise runs Neuralink and The Boring Co.
Warren sits on both the Senate’s Banking and Armed Services committees, and hasactually revealed comparable issues in the previous, consistingof demands to the SEC to examine Musk and Tesla. She likewise sentout correspondence to Denholm in late 2022 after Musk offered billions of dollars worth of his Tesla shares in part to financing a leveraged buyout of Twitter, which he lateron rebranded X.
Musk hasactually targeted Warren with criticism for years. He’s been referring to her as “Senator Karen” giventhat at least 2021, and bristled at her calls to boost taxes for the really rich, to close tax loopholes for corporations and billionaires, and to fracture down on business “greedflation.”
The issues Warren noted in the letter consistof Musk’s forming an synthetic intelligence start-up, xAI, exterior of Tesla even as the carmanufacturer expenses itself as an AI business, his risks to work on robotics and AI exterior of Tesla if he didn’t get a greater level of ballot control at the automaker, his motivating Tesla investors to authorize a $5 billion financialinvestment by Tesla into xAI, and his rerouting a delivery of pricey Nvidia AI chips to X that were initially slated for Tesla.
Warr