Tesla Shareholders Sue Elon Musk Over Competing AI Venture

Lawsuit claims Musk diverted talent and resources from Tesla to his new AI company, xAI.

Several major shareholders filed the lawsuit just before Tesla's annual meeting.
The suit alleges Musk poached 11 Tesla employees for xAI and diverted AI resources.
Musk's actions are compared to a CEO starting a rival company and using their original firm's assets.
Tesla's board is accused of failing to protect shareholder interests against Musk's actions.
Musk argues his compensation package is necessary to maintain control and prevent starting a competitor.