Tesla investors file lawsuit against Elon Musk for allegedly shifting talent, resources to xAI
Tesla shareholders have filed a lawsuit against CEO Elon Musk and other executives, accusing them of prioritizing xAI at the expense of the auto company. The plaintiffs claim that Musk’s artificial intelligence firm, xAI, has been poaching employees from Tesla, diverting significant financial resources, and utilizing Tesla’s data without proper compensation. They also highlight Musk’s tweet where he threatened to move AI efforts away from Tesla unless he obtained a higher voting control within the company. The lawsuit argues that Musk’s actions have greatly benefited xAI while causing substantial harm to Tesla. The plaintiffs are seeking various remedies, including damages, disgorgement of Musk’s equity stake in Tesla, and the establishment of a constructive trust over Musk’s interests in xAI.