Tesla Shareholders Sue Elon Musk Over Alleged Neglect of AI Growth

Three Tesla shareholders have separately taken legal action against Elon Musk and the company’s board within a week, with the latest complaint filed hours before Tesla’s annual meeting. The allegations vary, but all suits criticize Musk for prioritizing his AI company, X.AI Corp., over Tesla’s AI growth, and accuse the directors of failing to intervene. Complaints in Delaware court allege that Elon Musk sought to take AI-related projects elsewhere if he could not maintain a 25% equity stake in the electric car manufacturer.