Tesla investors are suing Musk for diverting resources from Tesla to xAI.
A group of Tesla investors has sued Musk, Tesla Inc., and board members, alleging that Musk harmed Tesla by diverting resources from Tesla to his artificial intelligence startup, xAI. The lawsuit alleges that the diverted resources included poaching artificial intelligence employees from Tesla, transferring Tesla's microchips to X (Twitter) and xAI, which also used Tesla data to develop its own software/hardware, for which Tesla was not compensated.