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Dubai News Club > Tech > Tesla investors sue Elon Musk for launching a rival AI company
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Tesla investors sue Elon Musk for launching a rival AI company

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Last updated: 2024/06/13
Press Room
Published: June 13, 2024
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Several Tesla shareholders are accusing Elon Musk and the company’s board of knowingly diverting talent and resources away from the company and directing it toward Musk’s rival artificial intelligence company, xAI.

In a lawsuit, the shareholders allege that Musk and the board breached their fiduciary duty to Tesla by launching xAI, which was founded in 2023 on the premise of understanding “the true nature of the universe.”

The plaintiffs filed their lawsuit in Delaware, where the…

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