Warren Calls for Tesla Board Investigation into Musk

Senator Elizabeth Warren has formally questioned Tesla's board regarding CEO Elon Musk's potential conflicts of interest arising from his use of company resources for his other ventures, including SpaceX and the newly established AI startup xAI. In her detailed 10-page letter, Warren expressed concerns that Musk's actions, such as diverting Nvidia AI chips from Tesla to X Corp., may constitute a misappropriation of corporate resources and neglect of fiduciary duties by the board. She highlighted Musk's encouragement for Tesla shareholders to approve a $5 billion investment in xAI and raised issues surrounding his formation of the AI startup while promoting Tesla as an AI leader. This scrutiny is part of Warren's ongoing criticism of Musk, who has previously dismissed her as 'Senator Karen' and resisted her calls for greater corporate accountability. Warren's letter may have significant implications for shareholder confidence if the board fails to address these governance issues. Her concerns echo past requests for SEC investigations into Musk's financial dealings and corporate conduct.