TechCrunch
Tesla shareholders are suing CEO Elon Musk and members of the automaker’s board of directors over Musk’s decision to start xAI, which they say is a competing AI company, and then divert talent and resources from Tesla to the new startup. The lawsuit is one of the most direct challenges to Musk’s decision to start xAI, and it comes on the heels of his threat to develop AI outside of Tesla unless he is awarded more voting control over the company. The suit was also filed just a few hours before Tesla is scheduled to host its annual meeting, where shareholders will likely vote to re-ratify the $56 billion compensation package that was struck down by a judge earlier this year.