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Activist investors want SEC to investigate Tesla - report
An activist investor group sent a letter to the United States Securities and Exchange Commission (SEC), requesting an investigation into Tesla Inc., CNBC reported on Friday after it had had access to the document.
The probe should focus on the decision by the company to reduce the number of directors on the board by one spot that had been reserved for an independent director, the SOC Investment Group allegedly said in the letter. Last month, Tesla announced that it will not name a replacement for outgoing board member Oracle Corporation Executive Chairman Larry Ellison.
Activist investors also want the filing that revealed Ellison's departure to be dismissed by the SEC and they allege that Tesla's board decision, as well as CEO Elon Musk's use of Twitter to make business announcements violate the terms of Musk's 2018 SEC settlement.