Tesla shareholders recently filed a lawsuit against CEO Elon Musk–the largest Tesla shareholder–and the board of directors over Musk’s decision to start a competing AI company (xAI).
The shareholders claim that Mr Musk and the board have breached their ‘fiduciary duty’ to Tesla shareholders by launching xAI and diverting talent and resources from Tesla to xAI.
This comes after Mr Musk raised $6B for xAI and diverted a shipment of NVIDIA AI chips reserved for Tesla. to xAI, claiming Tesla’s new data didn’t have room to store them.
The lawsuit came after Musk threatened to develop AI outside of Telsa unless he was given more voting control.
Despitr this ‘little glitch.’
Surprise, surprise Tesla Shareholders back a vote for a record $56bn (£43.9bn) for Elon’s pay package.
Plans to move Tesla’s legal headquarters to Texas were also approved.
The board re-elected James Murdoch (Rupert Murdoch’s son) and Kimbal Musk, Elon’s brother.
For context, Elon’s pay rise is 3,400 times more than the average American CEO.
If you take the average American household income, earning Elon’s pay rise would take 750,871 years.
Elon said to a crowd of shareholders who attended the company’s annual meeting, ‘Hot damn, I love you guys.’ How sweet!
