Investing.com -- Senator Elizabeth Warren has raised concerns about Elon Musk's significant involvement in President-elect Donald Trump's transition process and upcoming administration. As the world's wealthiest individual and owner of several major companies, Musk's unofficial role in the transition has been called a "massive conflict of interest" by Warren.
Musk, whose companies have substantial contracts and regulatory dealings with the federal government, was the largest individual financial supporter of Trump's campaign. He has been actively involved in the transition, participating in calls with foreign leaders, accompanying Trump to events, and spearheading an initiative aimed at enhancing government efficiency.
Warren expressed concerns in a letter to Trump, stating that the American public is currently unable to discern if Musk's advice is in the best interest of the nation or merely beneficial to his own financial situation. The Senator highlighted contracts the US government has with Musk's companies, SpaceX and Tesla (NASDAQ:TSLA) Inc., and mentioned that these companies have been the subject of "at least 20 recent investigations or reviews" by federal regulatory agencies.
Warren also referenced recent news about investigations by the Securities and Exchange Commission into Musk's company Neuralink Corp. and his acquisition of Twitter Inc (NYSE:TWTR). The Senator from Massachusetts noted that Musk has already financially benefited from his relationship with the Trump transition, citing a CNBC report that Tesla's market capitalization increased by $70 billion within five days following Trump's election.
Senator Amy Klobuchar of Minnesota also emphasized the importance of public awareness of the motivations of wealthy individuals working in any administration. Trump's transition team has released an ethics plan that prevents its members from working on specific matters that could affect their financial interests.
However, Musk is not subject to the ethical rules that govern federal employees. Despite Warren's concerns, her letter is unlikely to have a significant impact as Republicans will control the Senate next year. Trump transition spokeswoman Karoline Leavitt dismissed Warren's letter and defended the transition's commitment to the highest ethical and legal standards.
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