Tesla investors sue Elon Musk for diverting resources and talent to xAI

Tesla shareholders sued CEO Elon Musk and the company's board on Thursday, claiming that Musk's xAI startup is a "competitor" that has taken away artificial intelligence talent and resources from the company. On the same day, shareholders voted to restore Musk's $44.9 billion compensation plan, which was rejected by a Delaware judge in January of this year.

Cleveland Bakers and Teamsters Pension Fund, Daniel Hazen, and Michael Giampietro filed a shareholder lawsuit on June 13th in the Delaware Chancery Court on behalf of Tesla. They claimed that Musk transferred "Tesla's scarce talent and resources to xAI" and raised billions of dollars for the startup while "boasting that xAI can access Tesla's AI-related data."