Musk’s purchase of Twitter raises doubts-Senator
2022.12.19 10:38
Musk’s purchase of Twitter raises doubts-Senator
Budrigannews.com – On Monday, Democratic Senator Elizabeth Warren voiced concerns regarding Tesla (NASDAQ:) Following Elon Musk’s acquisition of Twitter, Inc.’s board of directors questioned the alleged use of Tesla employees at the social media company and failed to meet its legal obligation to safeguard the electric vehicle manufacturer.
“It remains unclear whether the Tesla board – which has key decision-making authority within the company – is adequately governing the company or if it has established clear rules and policies to address the risks to Tesla posed by Mr. Musk’s dual roles,” Warren wrote to Tesla board Chair Robyn Denholm. “Despite widespread concerns about Mr. Musk’s acquisition of Twitter while serving as CEO of Tesla,” Warren wrote.
Tesla did not respond to a request for comment, and Denholm could not be reached immediately.
“Raising questions about misappropriation of Tesla resources and a potential violation of SEC rules, potentially violating SEC ‘antitunneling’ rules that aim to prevent corporate insiders from extracting resources from their firms,” Warren cited reports that Musk brought in more than 50 Tesla employees to work at Twitter. The Securities and Exchange Commission is abbreviated as SEC.
Warren stated that Musk had not explained how he will resolve conflicts between his position at Tesla and his role as CEO of Twitter.
“Twitter depends on advertising revenue from car companies like Audi, Chevrolet, Ford, GM, Jeep, and Volkswagen, which are directly competing with Tesla (ETR:),” Warren wrote, ” Mr. Musk may decide to run Twitter in order to get the company the money it needs, even if that means making great deals for Tesla’s rivals and hurting Tesla.”
By the 3rd of January, she requested “detailed information on how the Tesla Board is monitoring these conflicts of interest and Mr. Musk’s appropriation of Tesla assets to Twitter, what guidelines the Tesla Board has put in place to protect Tesla.”
Separately, Twitter users cast ballots in support of Elon Musk’s resignation as CEO. According to the poll that the billionaire launched on Sunday evening, approximately 42.5 percent of the 17.5 million votes cast were against the idea of Musk stepping down as head of Twitter, while 57.5 percent cast a vote for “Yes.” Over 17.5 million people cast ballots.
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On Sunday, Musk said he would follow the poll’s results, but he didn’t say when he would step down if the results said he should.
