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

06/14 05:06

Wechat scan to share

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."

Comments

All Comments

Recommended for you

cointelegraph · 04/06 13:00

Decentralized exchanges gain ground despite $6M Hyperliquid exploit

Decentralized exchanges like Hyperliquid continue cutting into the market share of their centralized rivals.
Coindesk · 04/06 12:54

Nearly 400,000 FTX users risk losing $2.5 billion in repayments

Nearly 400,000 FTX users risk losing $2.5 billion in crypto repayments unless they complete KYC verification before the extended June 1 deadline.
Kevin Helms · 04/05 05:52

Coinbase Launching US Regulated 24/7 Bitcoin Futures

Coinbase is preparing to launch U.S.-regulated, 24/7 bitcoin and ethereum futures, aiming to modernize trading access and introduce perpetual-style contracts amid rising demand.
The Block · 04/04 23:39

Clanker team earns $13 million in revenue from over 200,000 tokens on Base in just five months

Clanker has generated nearly $27 million in all-time fees, which has resulted in over $13 million in revenue for its team.
Terence Zimwara · 04/04 23:37

The Dark Side of Tariffs: Dalio Predicts Global Stagflation and Economic Upheaval

Ray Dalio warns that Donald Trump’s tariff policies could lead to global stagflation and significantly alter U.S.- China trade relations.
Jesse Coghlan · 04/03 09:56

Alabama, Minnesota lawmakers join US states pushing for Bitcoin reserves

Bills to create Bitcoin reserves have been introduced in 26 states, with Arizona currently the closest to passing a law.
Stephen Moore · 04/03 09:53

‘National emergency’ as Trump’s tariffs dent crypto prices

A crypto investment specialist at crypto asset manager 21Shares told Cointelegraph that while markets experienced significant volatility, the tariff clarity could be a good thing in the long term.
Decrypt · 04/03 02:03

Avalanche Will Skyrocket and Outperform Bitcoin by End of 2029: Standard Chartered

Standard Chartered thinks the price of Avalanche's AVAX token could dramatically increase over the next few years, outpacing Bitcoin's gains.
bitcoin.com · 04/02 07:11

Trump Sons Launch “American Bitcoin” In Partnership with Hut 8

Hut 8 will hold an 80% stake in American Bitcoin, while American Data Centers, Backed by Trump sons, will take the remaining 20%.
Cryptonews24.xyz · 04/02 07:06

Stablecoin Issuer Circle Files for IPO on NYSE

Circle files for a traditional IPO, signaling its effort to blend digital currency with time-tested market standards and regulated financial practices.