{"id":75523,"date":"2024-08-10T09:03:42","date_gmt":"2024-08-10T13:03:42","guid":{"rendered":"https:\/\/autosector.com\/?p=75523"},"modified":"2024-08-10T09:03:42","modified_gmt":"2024-08-10T13:03:42","slug":"elizabeth-warren-elon-musk-betrayed-tesla-investors-by-prioritizing-other-companies","status":"publish","type":"post","link":"http:\/\/autosector.com\/?p=75523","title":{"rendered":"Elizabeth Warren: Elon Musk &#8216;betrayed&#8217; Tesla investors by prioritizing other companies &#8211; Autoblog"},"content":{"rendered":"<figure><figcaption>\n  <span class=\"copyright\">Richard Bord\/Getty Images; Jenny Chang-Rodriguez\/BI<\/span><br \/>\n <\/figcaption><\/figure>\n<ul class=\"summary-list\">\n<li><a class=\"injectedLinkmain\" href=\"https:\/\/www.autoblog.com\/tag\/elon+musk\/\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:0;\">Elon Musk<\/a> is shirking his duties to <a class=\"injectedLinkmain\" href=\"https:\/\/www.autoblog.com\/tesla\/\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:1;\">Tesla<\/a> investors, Senator Elizabeth Warren said.<\/li>\n<li>Warren called on Tesla&#8217;s board to ensure Musk was meeting his responsibilities at the carmaker.<\/li>\n<li>Investors have aired concern Musk is prioritizing his other companies, like X and xAI, ahead of Tesla.<\/li>\n<\/ul>\n<p>Elon Musk has turned his back on his own car company and appears to be putting his other projects ahead of Tesla, US Senator Elizabeth Warren said in a letter published this week.<\/p>\n<p>Warren \u2014 who&#8217;s been a <a href=\"https:\/\/www.businessinsider.com\/elon-musk-and-elizabeth-warren-taxes-feud-twitter-timeline-2021-12?utm_medium=referral&amp;utm_source=yahoo.com\" target=\"_blank\" rel=\"noopener\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:2;\">loud critic of Musk<\/a> and has sent multiple letters about his conduct to Tesla&#8217;s board \u2014 pointed to Musk&#8217;s simultaneous leadership roles at various companies including <a href=\"https:\/\/www.businessinsider.com\/tesla?utm_medium=referral&amp;utm_source=yahoo.com\" target=\"_blank\" rel=\"noopener\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:3;\">Tesla<\/a>, <a href=\"https:\/\/www.businessinsider.com\/spacex-elon-musk?utm_medium=referral&amp;utm_source=yahoo.com\" target=\"_blank\" rel=\"noopener\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:4;\">SpaceX,<\/a> and <a href=\"https:\/\/www.businessinsider.com\/did-elon-musk-buy-twitter-acquisition-details?utm_medium=referral&amp;utm_source=yahoo.com\" target=\"_blank\" rel=\"noopener\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:5;\">X Corp<\/a>.<\/p>\n<p>In particular, <a href=\"https:\/\/www.businessinsider.com\/tesla-shareholders-criticize-elon-musk-nvidia-chips-pay-package-2024-6?utm_medium=referral&amp;utm_source=yahoo.com#:~:text=Several%20institutional%20shareholders%20of%20Tesla,a%20multibillion%2Ddollar%20pay%20package.\" target=\"_blank\" rel=\"noopener\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:6;\">Musk&#8217;s recent decision<\/a> to divert Nvidia chips originally meant for Tesla to X shows a &#8220;glaring conflict of interest,&#8221; and could be interpreted as him <a href=\"https:\/\/markets.businessinsider.com\/news\/stocks\/elon-musk-tesla-stock-outlook-nvidia-ai-chips-ross-gerber-2024-6?utm_medium=referral&amp;utm_source=yahoo.com\" target=\"_blank\" rel=\"noopener\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:7;\">neglecting his responsibilities<\/a> to Tesla investors, Warren said in a new <a href=\"https:\/\/www.warren.senate.gov\/imo\/media\/doc\/final_-_warren_letter_to_tesla_board_re_musk_conflicts_of_interest.pdf\" target=\"_blank\" rel=\"noopener\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:8;\">letter<\/a> sent to Tesla&#8217;s Chair on Thursday.<\/p>\n<p>&#8220;I write to you with ongoing concern that Tesla&#8217;s Board of Directors appears to be failing to meet its fiduciary duties to Tesla&#8217;s shareholders by neglecting to address company CEO Elon Musk&#8217;s multiple interests,&#8221; Warren wrote. &#8220;Regardless of his personal pursuits and his vast personal wealth, Mr. Musk has legal responsibilities to Telsa\u2014a publicly traded company\u2014and its shareholders.&#8221;<\/p>\n<p>Musk&#8217;s <a href=\"https:\/\/www.businessinsider.com\/elon-musk-part-time-ceo-distracted-by-twitter-spacex-shareholders-2023-2?utm_medium=referral&amp;utm_source=yahoo.com\" target=\"_blank\" rel=\"noopener\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:9;\">many side projects<\/a> have worried Tesla investors for years. Shareholders began airing concerns in 2022 after Musk first acquired Twitter, which he later renamed X, in a deal that involved him selling Tesla stock to pay for the $44 billion acquisition.<\/p>\n<p>Then, last year, he launched <a href=\"https:\/\/www.businessinsider.com\/elon-musk-fills-out-xai-former-tesla-staffers-after-layoffs-2024-6?utm_medium=referral&amp;utm_source=yahoo.com\" target=\"_blank\" rel=\"noopener\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:10;\">xAi<\/a>, an artificial intelligence startup that some investors have feared could lead Musk further astray from Tesla&#8217;s AI goals.<\/p>\n<p>Tesla has <a href=\"https:\/\/www.businessinsider.com\/elon-musk-says-tesla-robotaxi-event-delay-due-to-redesign-2024-7?utm_medium=referral&amp;utm_source=yahoo.com\" target=\"_blank\" rel=\"noopener\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:11;\">delayed the unveiling of its self-driving Robotaxi<\/a> to October, sparking a small sell-off in Tesla shares last month.<\/p>\n<p>Musk has shrugged off the diversion chips to Tesla as a matter of <a class=\"\" href=\"https:\/\/twitter.com\/elonmusk\/status\/1798007748728365503\" target=\"_blank\" rel=\"noopener\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:12;\">limited space in its factories<\/a>. Some investors have criticized that as a &#8220;<a class=\"\" href=\"https:\/\/markets.businessinsider.com\/news\/stocks\/elon-musk-tesla-stock-outlook-nvidia-ai-chips-ross-gerber-2024-6?utm_medium=referral&amp;utm_source=yahoo.com\" target=\"_blank\" rel=\"noopener\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:13;\">weird excuse<\/a>,&#8221; given that Telsa&#8217;s Texas gigafactory has over 10 million square feet of factory floor space, according to the company&#8217;s website.<\/p>\n<p>&#8220;It therefore appears that Mr. Musk has betrayed his duty to Tesla&#8217;s shareholders, either by knowingly prioritizing one of his private companies over Tesla or by exaggerating the extent of Tesla&#8217;s AI projects to boost investor confidence \u2014 or both,&#8221; Warren added.<\/p>\n<p>&#8220;This betrayal is particularly egregious when considering that Mr. Musk has long framed AI as a core component of Tesla&#8217;s business, if not <em>the<\/em> core component.&#8221;<\/p>\n<p>Musk&#8217;s <a href=\"https:\/\/www.businessinsider.com\/elon-musks-investments-tesla-xai-x-connected-2024-7?utm_medium=referral&amp;utm_source=yahoo.com\" target=\"_blank\" rel=\"noopener\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:14;\">list of companies<\/a> and projects has been growing at a critical time for Tesla, whose stock has been hurting in 2024. Tesla shares are down 20% year-to-date, pulled lower after the company <a href=\"https:\/\/www.businessinsider.com\/tesla-stock-tsla-earnings-call-report-live-updates-2024-7?utm_medium=referral&amp;utm_source=yahoo.com#:~:text=Tesla%20missed%20earnings%20estimates%20while,amid%20a%20challenging%20demand%20environment.\" target=\"_blank\" rel=\"noopener\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:15;\">missed second-quarter earnings<\/a> estimates and Musk failed to reassure investors about the carmaker&#8217;s Robotaxi delay and AI chip supply.<\/p>\n<p>Warren included a list of questions for Tesla&#8217;s board, inquiring about internal investigations into Musk&#8217;s recent decision to divert chips and if there were any &#8220;specific guardrails&#8221; placed on the CEO.<\/p>\n<p>If the board fails to ensure Musk is meeting his responsibilities, intervention from federal regulators could be warranted, she added.<\/p>\n<div class=\"read-original\">\n Read the original article on <a href=\"https:\/\/www.businessinsider.com\/elon-musk-tesla-stock-price-ai-chips-xai-artificial-intelligence-2024-8\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:16;\">Business Insider<\/a>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Richard Bord\/Getty Images; Jenny Chang-Rodriguez\/BI Elon Musk is shirking his duties to Tesla investors, Senator Elizabeth Warren said. Warren called on Tesla&#8217;s board to ensure Musk was meeting his responsibilities at the carmaker. Investors have aired concern Musk is prioritizing his other companies, like X and xAI, ahead of Tesla. Elon Musk has turned his [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":8313,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[3],"tags":[],"class_list":["post-75523","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-design-concepts"],"_links":{"self":[{"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/posts\/75523","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=75523"}],"version-history":[{"count":0,"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/posts\/75523\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/media\/8313"}],"wp:attachment":[{"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=75523"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=75523"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=75523"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}