Elizabeth Warren renews call for SEC to probe Tesla over board independence

By Robert Schroeder

Among Warren's concerns is Tesla's decision to advertise on X, which Musk owns

Sen. Elizabeth Warren is urging the Securities and Exchange Commission to investigate whether Tesla broke rules governing board independence at public companies, doubling down on similar concerns she raised last summer.

Warren, a Massachusetts Democrat, said in a letter to the agency: "New evidence has emerged in recent months that deepen my concerns that Tesla's Board lacks independence from [CEO Elon] Musk, who uses his control over the Board for his personal benefits, rather than in the best interest of Tesla's shareholders."

In a letter to the agency in July 2023, Warren raised concerns about what she called the board's failure to address possible misappropriation of Tesla (TSLA) resources and conflicts of interest arising from Musk's roles at Tesla and X, the social-media platform formerly known as Twitter.

In her letter dated Thursday, the senator cited a Wall Street Journal investigation that documented the ties between Musk and several Tesla board members, including some designated as independent.

An SEC spokesperson told MarketWatch that SEC Chairman Gary Gensler will respond to members of Congress directly.

Among Warren's concerns is Tesla's decision to advertise on X, which Musk owns.

"Despite the growing concerns posed by Mr. Musk's conflicting roles at Tesla and his private companies, the Board appears to have taken noaction to address these risks or protect its shareholders," Warren wrote.

-Robert Schroeder

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03-21-24 1428ET

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