US Senator Questions Tesla Board’s Compliance with Securities Law

• US Senator Elizabeth Warren accused Tesla board members of misappropriating assets and conflicts of interest.
• Warren urged the SEC to investigate the possible ties between Tesla and Musk’s takeover of Twitter.
• Though Musk has been influential in the crypto space after purchasing Twitter, as per Warren’s letter, his actions have created uncertainty within the community.

United States Senator Elizabeth Warren has recently requested the Securities and Exchange Commission (SEC) to probe into the possible ties between Elon Musk’s Tesla and his takeover of the social media platform Twitter. She questioned the Tesla board’s compliance with the US regulators pointing out its lethargy to address the investors’ concerns.

Earlier today, a crypto analytics platform, took to Twitter to share a screenshot of Warren’s letter to the regulators, pointing out the allegations against Tesla’s board members. As per the tweet, the Senator has alleged Tesla’s board of “misappropriating assets and conflicts of interest.”-

The Senator stated that the board members are apparently dependent on Musk, and their inactivity has created uncertainty among the community. Though investors and shareholders repeatedly attempted to approach the board, it failed to “uphold its legal duty to ensure that Musk acts in the best interest of Tesla.” As stressed by Warren, the board’s “inaction and incomplete disclosure” creates possibilities of violating securities laws and exchange norms that fall under the SEC jurisdiction. While addressing the concerns of the community, Warren added:

Mr. Musk’s actions since purchasing Twitter and becoming its Chief Executive Officer (CEO) – while remaining Tesla’s CEO – have raised concerns about conflicts of interest, misappropriation of corporate assets, and other negative impacts to Tesla shareholders.

The tech billionaire Musk, who recently unveiled the AI company called xAI, has significantly influenced the growth of specific crypto tokens related to Artificial Intelligence (AI), including Fetch.ai (FET) and SingularityNET (AGIX). While AGIC grew by more than 6% following the launch of the AI platform, FET exhibited an increase of more than 4%.

Over the past few months, the Twitter owner has been facing accusations, especially concerning his connection with the memecoin Dogecoin (DOGE). Previously, he was charged with manipulating the price of the memecoin and executing a Dogecoin pyramid scheme. Though the billionaire was hailed as a Dogecoin whale, he denied allegations of owning Dogecoin wallets.