Elizabeth Warren raises concerns about Musk's corporate ties to Tesla's board.

• On Thursday, Sen. Elizabeth Warren wrote to Robyn Denholm, chairperson of Tesla, about potential breaches of CEO Elon Musk's fiduciary duty to the company.
• Has the board ever investigated Musk's use of Tesla resources to benefit his other companies, including SpaceX and xAI?
• Warren, a member of the Senate's banking and armed services committees, has previously voiced similar concerns and urged the SEC to investigate Musk.

Elizabeth Warren, a senator from Massachusetts, is inquiring about the board's investigation into Elon Musk's utilization of company resources for the benefit of his other enterprises, such as SpaceX and xAI.

Warren accused Tesla's Board of Directors of failing to fulfill their duties to shareholders by not addressing Elon Musk's potential conflicts of interest, as he also runs Neuralink and The Boring Co.

Warren, a member of the Senate's banking and armed services committees, has previously expressed similar concerns regarding Musk and Tesla, including requests to the SEC to investigate the company. In late 2022, she sent correspondence to Denholm after Musk sold billions of dollars worth of Tesla shares to finance a leveraged buyout of Twitter, which he later rebranded X.

Since at least 2021, Musk has been referring to Warren as "Senator Karen" and has been critical of her for years. He has bristled at her calls to increase taxes for the wealthy, close tax loopholes for corporations and billionaires, and crack down on corporate "greedflation."

Warren raised issues about Musk's creation of xAI, a startup focused on artificial intelligence, outside of Tesla despite the company's self-proclaimed focus on AI. Additionally, Musk threatened to work on robotics and AI outside of Tesla if he did not receive more voting control at the company. He encouraged Tesla shareholders to approve a $5 billion investment in xAI, and redirected a shipment of costly AI chips from Tesla to X, which were originally intended for the automaker.

Warren's letter, which arrives two months after CNBC reported that Nvidia staffers' correspondence indicated that Musk diverted a significant shipment of AI processors reserved for Tesla to X, raises concerns about xAI's poaching of Tesla employees and the departure of a Tesla director due to the board's "family-like" operation rather than adherence to public company rules and regulations.

By August 23, Denholm and Tesla are expected to respond to Warren's inquiries about the board's supervision of Musk and the interconnectedness of his various enterprises.

The senator's office spokesperson confirmed that neither Tesla nor Denholm have responded to Warren's previous letters.

Read the full letter here: