✨ Musk Diverts Tesla Resources to Fuel His AI Ambitions
posted 14 Jun 2024
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.
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