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thewayneI've been waiting for this one to be filed. The Muskbrat diverted a hundred or more Nvidia H100 AI CPUs from Tesla to Twitter and xAI without paying Tesla for them. He's also poached a dozen AI workers from Tesla for xAI. A group of Tesla stockholders have filed suit in DELAWARE Chancery Court over this.
The root problem, of course, is that these are independent corporations, not The Muskbrat's personal playgrounds, regardless of how he views and treats them. If Twitter and xAI were subsidiaries of Tesla, there would be no problem - you're just moving resources from pocket A to pocket B in the same jacket. But these are independent companies nominally controlled by one person: The Muskbrat. So he effectively stole scarce resources (the AI CPUs are in very scarce supply and extremely high demand) from Tesla and gave them to another company that is not financially tied to Tesla.
The suit also cites the board as being negligent in not preventing The Muskbrat from poaching talent and theft from the company. Two members of the board are his brother and a long-time friend, who were just re-elected to the board.
In other Tesla news, The Muskbrat's ridiculous compensation package was overwhelmingly approved by Tesla stockholders. HOWEVER, and I do so love that word in this context, we're in unknown ground regarding whether or not a shareholder vote trumps a judge's decision! We're in Wonderland here, and no one knows what will happen next. The shareholders also voted to approve the reincorporation of Tesla in Texas, but that won't eradicate the judge's ruling.
https://arstechnica.com/tech-policy/2024/06/tesla-investors-sue-elon-musk-for-diverting-carmakers-resources-to-xai/
The root problem, of course, is that these are independent corporations, not The Muskbrat's personal playgrounds, regardless of how he views and treats them. If Twitter and xAI were subsidiaries of Tesla, there would be no problem - you're just moving resources from pocket A to pocket B in the same jacket. But these are independent companies nominally controlled by one person: The Muskbrat. So he effectively stole scarce resources (the AI CPUs are in very scarce supply and extremely high demand) from Tesla and gave them to another company that is not financially tied to Tesla.
The suit also cites the board as being negligent in not preventing The Muskbrat from poaching talent and theft from the company. Two members of the board are his brother and a long-time friend, who were just re-elected to the board.
In other Tesla news, The Muskbrat's ridiculous compensation package was overwhelmingly approved by Tesla stockholders. HOWEVER, and I do so love that word in this context, we're in unknown ground regarding whether or not a shareholder vote trumps a judge's decision! We're in Wonderland here, and no one knows what will happen next. The shareholders also voted to approve the reincorporation of Tesla in Texas, but that won't eradicate the judge's ruling.
https://arstechnica.com/tech-policy/2024/06/tesla-investors-sue-elon-musk-for-diverting-carmakers-resources-to-xai/
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Date: 2024-06-16 11:27 pm (UTC)Hugs, Jon
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Date: 2024-06-17 04:35 am (UTC)no subject
Date: 2024-06-17 07:00 pm (UTC)I don't know if that'll happen. They voted to approve his pay package with like 74%, and also reappointed his brother and BFF to the board. Meanwhile the line hasn't been refreshed and sales have been sagging badly. Seems to me that the stock is being held be stans who really don't care too much.