3 ms·

Is this a moral or legal code that is being broken somehow? Because he owns both companies it is somehow immoral to do business between them?

• tayo42 3y ago
  no, but there is potential so its probably better off not doing it. but this sounds pretty low for a major company's advertising budget and pretty low in relative amounts to be worth risking doing corrupt things.
• ipv6ipv4 3y ago
  Tesla is a publicly traded company with shareholders. Twitter is Musk’s private plaything. Tesla using Twitter services could be a conflict of interest because Musk is CEO of both and could be using his position at Tesla to funnel public shareholder money into Twitter, aka his pocket.
• nrb 3y ago
  Other shareholders of the companies might bring up conflict of interest concerns, if the deal is lopsided one way or the other. Theoretically it is a way to siphon funds from one company to the other if he forced one of his companies to take a raw deal from the other. If both sides got a fair deal, it’s probably not much to worry about though.
• fblp 3y ago
  He actually doesn't own both companies. He largely owns X which is a private entity. He owns ~20% of Tesla, and the rest is owned by other shareholders. As a company officer he has a fiduciary duty to act in the interests of all Tesla shareholders, and any sales or deals to other entities he has in an interest in pose a conflict. That conflict can often be mitigated by oversight or deferral of decision making to parties that don't hold the conflict such as other board members or corporate officers.
• hackerlight 3y ago
  He owns a fraction of Tesla and a much larger fraction of X, so there's a financial incentive to pump money and reputation from the former to the latter.