Musk in the crosshairs: Warren asks Tesla board to investigate resource utilisation
Senator's read that the chip hijacking could be a 'misappropriation of corporate resources' and the foundation of xAI is itself an 'unavoidable conflict of interest' for Musk
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Senator Elizabeth Warren has asked the board of Tesla Inc. to investigate whether CEO Elon Musk is using the electric vehicle manufacturer's resources to benefit other companies he owns and operates.
In a 10-page letter sent Thursday to Tesla chairman Robyn Denholm, the Democratic senator said Musk's activities - such as hijacking computer chips from the automaker to his social media company X Corp - may be inappropriate. In June, Musk acknowledged that he had sent the graphics processing units to X and the artificial intelligence company xAI Corp. stating that they would otherwise remain in a warehouse.
Warren argued that the chip hijacking could be a 'misappropriation of company resources' and claimed that the foundation of xAI is itself an 'unavoidable conflict of interest' for Musk.
Tesla did not immediately respond to a request for comment.
The senator also expressed concern that the board of Tesla may have "neglected" its corporate governance duties and that the company lacks oversight. It wants more information to better understand whether the Securities and Exchange Commission or other regulatory agencies should intervene.
