Tesla shareholders are taking Elon Musk to court over his xAI startup, because they consider it a ‘competing company’ – as in, competing with Tesla, of course.
Tesla shareholders argue that Tesla stock value may be negatively impacted by this, because they believe that Musk may divert resources, both financial and in terms of talent, from Tesla to xAI.
Ironically, the lawsuit was filed on the same day shareholders voted to restore Musk’s $44.9 billion pay package that a Delaware judge threw out in January.
According to the lawsuit, filed by Cleveland Bakers and Teamsters Pension Fund, Daniel Hazen and Michael Giampietro in Delaware’s Chancery Court, Musk is doing two things that might affect Tesla stock value.
One, he’s diverting talent and resources from Tesla to xAI and two, he’s giving2 xAI a potentially unfair advantage by allowing access to Tesla’s AI-related data..
Tesla stock is actually up over the last seven days, but the lawsuit is interesting. And they do have a point.
If the value of my stock is tied to a certain type of technology, and I know that the CEO of said company is effectively helping competition, then perhaps I have the right to be at least a little annoyed.
Having said that, as a Tesla shareholder, I’m well aware that Tesla stock is tied to Elon Musk, and Elon Musk is a bombastic, loud and controversial CEO that does bombastic, loud and controversial things.
I accept that, and still choose to own Tesla stock.
I think, this is just my opinion, if you’re not ready to accept that, then perhaps you shouldn’t hold Tesla stock.
The main image for this story was generated using Perplexity
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