Senator Elizabeth Warren has requested Tesla Inc.’s board to analyze whether or not Chief Govt Officer Elon Musk is utilizing the electric-vehicle maker’s assets to learn different corporations he owns and runs.
In a 10-page letter despatched Thursday to Tesla Chair Robyn Denholm, the Democratic senator mentioned Musk’s actions — like diverting pc chips from the carmaker to his social media firm X Corp. — could also be inappropriate. Musk acknowledged in June he despatched the graphics processing items to X and synthetic intelligence enterprise xAI Corp., saying they’d have in any other case sat in a warehouse.
Warren argued diverting the chips might be a “misappropriation of corporate resources” and mentioned founding xAI in itself is an “unavoidable conflict of interest” for Musk.
Tesla didn’t instantly reply to a request for remark.
The senator additionally raised issues that Tesla’s board could have “neglected” its company governance duties and that the corporate lacks oversight. She desires extra data to raised perceive whether or not the Securities and Alternate Fee or different regulatory companies could have to intervene.
Warren, who sits on the Senate’s Banking and Armed Providers committees, has voiced comparable issues up to now, and has requested the SEC to analyze Tesla earlier than.
