Tesla investors sue Elon Musk for diverting resources and talent to xAI
Tesla shareholders sued CEO Elon Musk and the car manufacturer's board of directors on Thursday, claiming that Musk's xAI startup is a "competing company" that has taken away artificial intelligence talent and resources from the company. On the same day, shareholders voted to reinstate Musk's $44.9 billion compensation plan, which was rejected by a Delaware judge in January this year. The Cleveland Bakersand Teamsters Pension Fund, Daniel Hazen and Michael Giampietro filed a shareholder lawsuit on behalf of Tesla with the Delaware Chancery Court on June 13th. They claim that Musk has "transferred Tesla's scarce talents and resources to xAI", raised billions of dollars for this start-up company while "boasting that xAI can access Tesla's AI-related data".
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