A group of Tesla shareholders has recently filed a lawsuit against CEO Elon Musk and the company, alleging that Musk has been draining Tesla of resources and talent in favor of his new AI-focused company, xAI. The lawsuit, filed in Delaware where Tesla is incorporated, accuses Musk of diverting critical AI talent and resources away from Tesla and into his new venture. The shareholders also claim that Tesla's board has not taken any action to stop him.
Musk has been vocal about the importance of AI capabilities for Tesla's future growth and success, even going as far as to suggest that Tesla is more of an AI company than just an electric car company. The lawsuit alleges that Musk has poached AI-focused employees from Tesla to work for xAI and redirected critical Nvidia GPUs from Tesla to his new startup.
The shareholders also point to a tweet from Musk in which he expressed discomfort growing Tesla as a leader in AI and robotics without having a larger stake in the company. They argue that Tesla's board has failed in its fiduciary duty to protect the interests of the company and its stockholders in the face of Musk's alleged disloyalty.
Since the filing of the lawsuit, Tesla's stock has dropped more than 25% this year, leading some critics to suggest that Musk's focus on other projects may be distracting him from his duties at Tesla. Musk's proposed pay package has also been affected, dropping from an estimated $55 billion to $45 billion.
While the lawsuit raises serious allegations against Musk and Tesla, it remains unclear whether the decline in Tesla's stock value can be solely attributed to Musk's actions. The outcome of the lawsuit and its potential impact on Tesla's future remain to be seen. Tesla representatives have not yet responded to requests for comment on the matter.