The lawsuit alleges that at least 11 employees have joined xAI directly from Tesla, and that Tesla has been providing xAI access to its AI-related data. It also claims that Musk diverted a shipment of AI processors from Nvidia, reserved for Tesla, to his social media company X. This comes amidst other legal challenges for Musk, with another group of shareholders filing a separate suit against him earlier this week, accusing him of making billions by selling Tesla's stock in 2021 and 2022 using insider information.
Key takeaways:
- Tesla shareholders are suing CEO Elon Musk and the company's board of directors over Musk's decision to start a competing AI company, xAI, and divert resources from Tesla to the new startup.
- The lawsuit alleges that Musk and the board breached fiduciary duties to shareholders, unjustly enriched Musk, and violated Tesla’s code of business ethics.
- The plaintiffs are asking the court to force Musk to give up his stake in xAI and hand it over to Tesla, and they compare Musk's actions to a CEO of Coca-Cola starting a rival soft-drink company and sending ingredients to it.
- The lawsuit claims that at least 11 employees have joined xAI directly from Tesla, and that Tesla has been providing xAI access to its AI-related data. It also alleges that Musk diverted a shipment of AI processors from Nvidia that had been reserved for Tesla to his social media company X.