Tesla Investors File Lawsuit Against Musk and Company for Alleged Diversion of Resources to xAI
TapTechNews June 15th news, according to Arstechnica, on the 14th local time, a group of Tesla investors sued Musk, the Tesla company and board members, accusing Musk of diverting resources to his artificial intelligence startup xAI and causing damage to Tesla.
The lawsuit claims that the diverted resources include poaching artificial intelligence employees from Tesla, transferring Tesla's microchips to X (Twitter) and xAI, and xAI also uses Tesla's data to develop its own software/hardware, yet Tesla has not received compensation for this.
This lawsuit was filed by three Tesla shareholders to the Delaware Chancery Court: the Cleveland Bakers and Truckers Retirement Fund, Daniel Hassen, and Michael Gianpietro. The lawsuit demands compensation for Tesla's economic losses and requires Musk to return his equity in xAI to Tesla.
The lawsuit 'asks' Tesla and Musk, 'Can the CEO of Coca-Cola 'oonlight' to start a competing soft drink company and remain (loyal to the original company), and then transfer Coca-Cola's scarce raw materials to this startup company? Can the CEO of Goldman Sachs 'oonlight' to start a competing financial consulting company and remain (loyal to the original company), and then poach Goldman Sachs' key bankers to this startup company? Can the boards of the two companies loyally allow such behavior without taking any action? Of course not.
The lawsuit claims that Tesla and Musk once declared that AI is the key to Tesla's future and described Tesla as an 'AI company'. But after founding xAI last March, Musk poached many key employees focused on AI from Tesla and later transferred the Nvidia GPUs used for Tesla to X and xAI.
According to TapTechNews' previous reports, in April this year, Tesla machine learning scientist Ethan Knight has already joined xAI's camp. Before his departure, there were also some engineers who had worked in supercomputing, autonomous driving, and artificial intelligence infrastructure at Tesla and joined xAI in the past 12 months.