Sen. Warren wants the SEC to investigate Tesla: here’s why

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Written on Jul 17, 2023

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Sen. Warren wrote a letter to Securities and Exchange Commission on Monday.
Tesla Inc confirmed that it has built its first Cybertruck at Giga Texas today.
Shares of the EV company are up roughly 160% for the year at writing.

Tesla Inc (NASDAQ: TSLA) is in focus this morning after Sen. Elizabeth Warren urged the U.S. SEC to investigate the electric vehicles behemoth.

What she wrote in a letter to SEC today

Last year, Elon Musk spent $44 billion to take over Twitter and served as its Chief Executive for months – something that didn’t sit well with Sen. Warren. In a letter to the regulator today, she wrote:

Musk’s actions since becoming Twitter CEO while remaining Tesla CEO – have raised concerns about conflicts of interest, misappropriation of corporate assets, and other negative impacts to Tesla shareholders.

SEC’s Office of Public Affairs is yet to comment on the news.

In May, Musk named Linda Yaccarino the new Chief Executive of Twitter (source). He’s still the CTO of the social networking service, though.

Sen. Warren is unhappy with Tesla’ board

Note that Sen. Warren had raised similar concerns in an earlier correspondence to Robyn Denholm – Chair of the Board of Directors at Tesla Inc. In her letter on Monday, she added:

Board’s inadequate disclosures, and the close relationships of several board members to Musk, raise questions about effectiveness of corporate governance and potential violations of securities laws.

Over the weekend, the multinational automotive giant also confirmed that it has built its first Cybertruck at Giga Texas – a news that’s weighing on Rivian shares on Monday.

Tesla is scheduled to report its second-quarter financial results this week. Ahead of the report, its shares are up roughly 160% versus the start of 2023.