Musk Diverts Tesla Resources to Fuel His AI Ambitions
Tesla investors have accused Elon Musk of diverting the company’s resources and personnel to benefit his AI project, xAI.
On this page
Tesla investors have accused Elon Musk of diverting the company's resources and personnel to benefit his AI project, xAI.
The lawsuit, filed in Delaware, asserts that Musk violated his duties to Tesla, while the company's board of directors did nothing to stop his misconduct. The plaintiffs, including the Cleveland Bakers and Teamsters Pension Fund, and individual investors Daniel Hazen and Michael Giampietro, argue that Musk's actions have been detrimental to Tesla.
Investors emphasize that Musk's vision to turn Tesla into a leader in AI and robotics has been undermined by his focus on xAI. They cite an incident where thousands of Nvidia AI chips, intended for Tesla, were redirected to xAI. Musk explained that the chips were redirected because Tesla's Texas factory was not ready to receive them.
Recently, Musk has also faced accusations of allegedly profiting $7.5 billion from insider trading of Tesla shares.
The content on The Coinomist is for informational purposes only and should not be interpreted as financial advice. While we strive to provide accurate and up-to-date information, we do not guarantee the accuracy, completeness, or reliability of any content. Neither we accept liability for any errors or omissions in the information provided or for any financial losses incurred as a result of relying on this information. Actions based on this content are at your own risk. Always do your own research and consult a professional. See our Terms, Privacy Policy, and Disclaimers for more details.
Articles by this author
