Elon Musk is diverting Tesla’s GPUs to X, xAI, Nvidia emails say
- Thread starter JournalBot
- Start date
As the bottom of the article says "Not the First time" but even with that he's also being accused of insider trading.
https://fortune.com/2024/06/03/elon-musk-tesla-insider-trading-lawsuit-board-directors/
Looks like he's going for the Trump school of Crime where if you Crime enough they can't prosecute you because they're too late and you're 20 crimes deeper. Derives from the the Loblaw school of thinking.
https://fortune.com/2024/06/03/elon-musk-tesla-insider-trading-lawsuit-board-directors/
Looks like he's going for the Trump school of Crime where if you Crime enough they can't prosecute you because they're too late and you're 20 crimes deeper. Derives from the the Loblaw school of thinking.
Upvote
468
(476
/
-8)
The goal is to start info warfare on the platform he owns just by, you know, "asking questions", in the run-up to the elections.
This is why X have changed their TOS to divert conversation to something else.
You cannot have power by selling lots of cars, power comes from controlling and shaping the narrative.
This is why X have changed their TOS to divert conversation to something else.
You cannot have power by selling lots of cars, power comes from controlling and shaping the narrative.
Upvote
192
(200
/
-8)
infernal666
Ars Praefectus
If Musk wants prove his self driving works he should hop in the back and let the car drive him across New Delhi,if he can manage that I'll be legit impressed.
Upvote
137
(146
/
-9)
He once said, many years ago, like 2014 era, that any spare personal capital of his was going into SpaceX. Then only a few years later builds a mansion for himself? Then a few years later lies to all SpaceX employees telling them if they don't work overtime that SpaceX will fail due to lack of funding? What a POS.
Brace for stans decrying this as a "hit piece" like they always do.
Brace for stans decrying this as a "hit piece" like they always do.
Upvote
343
(351
/
-8)
Literally any other responsible Board of Directors would be holding a vote to remove Elon Musk as CEO right now.
You just can't sacrifice months of operational execution time for the company you're responsible for.
It's blatantly obviously that Musk's conflict of interests now prevent him from accomplishing his duties as an executive of these companies. You can't do this kind of work simultaneously and pretend there is no competition for resources (not least of all your "valuable" time and attention)!
You just can't sacrifice months of operational execution time for the company you're responsible for.
It's blatantly obviously that Musk's conflict of interests now prevent him from accomplishing his duties as an executive of these companies. You can't do this kind of work simultaneously and pretend there is no competition for resources (not least of all your "valuable" time and attention)!
Upvote
441
(444
/
-3)
For criminey sake - doesn't that idiot have any idea of how the law works? Between this and the insider trading (see Calth's post above), he is en route to losing just about everything he's accumulated simply because he refuses to obey very simple laws!
And it couldn't happen to a nicer jerk.
And it couldn't happen to a nicer jerk.
Upvote
224
(229
/
-5)
Cue the outrage .. of the years old stan accounts who will complain that this is just another biased hit piece published in order to increase clicks on ARS, all the while ignoring that there is a huge difference between what you can legally do with a public company vs a private company.
(/s if you really need it)
(/s if you really need it)
Upvote
52
(76
/
-24)
There is another word: Embezzlement. Using public money to enrich your private assets has that odor to it.
Upvote
241
(246
/
-5)
Elon I'm sure understands that this is the beginning of the end for Tesla Motors with him at the helm. Question is how long will shareholders and the law allow him to maintain control?
He will bleed everything he can before collecting his billions and selling the company.
He will bleed everything he can before collecting his billions and selling the company.
Upvote
145
(148
/
-3)
On a material level, Mr. Scatter-Brain is once again all over the place and unable to focus on any one thing. This lack of focus and constant tangents should be on the radar of all boards and investors involved. The man has quickly gone well into Howard Hughes territory.
Upvote
64
(67
/
-3)
So hypothetically, couldn’t any of the current “AIs” just replace him completely at this point? I mean, they can spout of nonsense with best of them, they can give terrible advice, they can deceive customers and shareholders alike, and so on.
I guess maybe the difference is that AI can be programmed NOT to break the law, so probably a bit premature….
I guess maybe the difference is that AI can be programmed NOT to break the law, so probably a bit premature….
Upvote
105
(106
/
-1)
I guess we will see just what kind of suckers the remaining Tesla stockholders are. Anyone sane sold a while ago, and any savvy capital managers sold when it was still $700 a share. I’m dismayed so many investment groups are putting their client’s money at risk by holding this idiot’s stocks, but I guess the stockbroker bros love his bad-boy posturing.
Upvote
81
(82
/
-1)
Since when did Tesla become some kind of AI and robotics company? Tesla is just a bad car company. Last I checked, they were in the business of making overpriced electric cars that constantly miss production targets.
The idea that Elon Musk is diverting resources like high-end GPUs from Tesla to his pathetic social media playground X is absolutely laughable. What's next, are they going to claim Tesla is also working on brain-computer interfaces and sending satellites into orbit?
This reads like a bad tech bro fantasy dreamed up by folks who have no clue how the actual automobile industry works. Advanced AI chips and supercomputers at a car company? Maybe when they finally figure out how to manufacture cars at any reasonable scale (so, never). Until then, this reeks of nothing more than fanboy delusion to make Tesla seem cutting-edge and innovative when they can't even get their core business right.
I'll believe Tesla is an "AI robotics firm" when I see their first humanoid robot that can actually perform useful tasks without being a buggy mess (so, never). They should focus on making decent cars people can actually buy before dreaming of machine learning moonshots.
The idea that Elon Musk is diverting resources like high-end GPUs from Tesla to his pathetic social media playground X is absolutely laughable. What's next, are they going to claim Tesla is also working on brain-computer interfaces and sending satellites into orbit?
This reads like a bad tech bro fantasy dreamed up by folks who have no clue how the actual automobile industry works. Advanced AI chips and supercomputers at a car company? Maybe when they finally figure out how to manufacture cars at any reasonable scale (so, never). Until then, this reeks of nothing more than fanboy delusion to make Tesla seem cutting-edge and innovative when they can't even get their core business right.
I'll believe Tesla is an "AI robotics firm" when I see their first humanoid robot that can actually perform useful tasks without being a buggy mess (so, never). They should focus on making decent cars people can actually buy before dreaming of machine learning moonshots.
Upvote
87
(101
/
-14)
His companies are funded by hype, public money and almost false information that he spins around. And somehow even institutions are buying it.
SpaceX was almost entirely funded by NASA/Govt. contracts.
Starlink for Ukraine? Yes, but after a very short time, Musk decided he no longer wants to fund them and US Dept of Defence was suddenly forced to fund the full Starlink bill for Ukraine (while not being able to use it for "military" purposes). Bam, more public funding. Bait and switch.
Using Tesla money to buy Twitter, then tanking the company's valuation (and where is the magical Tesla stock now?).
More govt funding? Billions (maybe lower tens of billions now) of subsidies, credits etc. were poured into to Tesla, SolarCity, that dumb tunnel, pandemic stimuli...
Upvote
65
(84
/
-19)
Yeah, I was wondering this. Unless he's personally paid for these GPUs out of his own pocket, this is just theft.
Upvote
95
(100
/
-5)
When you point out how bad Tesla cars are (QC wise, or ergonomy wise), fanboys will tell you they are a data and software company, not a car company
Recent article headline from Yahoo Finance: "Elon Musk insists Tesla isn’t a car company as sales falter"
Upvote
99
(104
/
-5)
The board are terrified that he will tank their stock if they don't give in to the toddler's demands. They know that a large portion of their value is hype. If the value of Tesla was real, they would have kicked Musk out long ago because any hit to stock value would be temporary. Instead they have climbed into the car with Mr. Toad and buckled in for the entirety of his wild ride.
Upvote
154
(158
/
-4)
I mean, you kinda can. It's up to the board to vote him out. There is not and has never been a law saying that CEOs have a "fiduciary duty" to shareholders. It's a common misconception that's widely parroted by executives because it takes the heat off their choices. It becomes, "don't hate the player, hate the game." How many times have you seen people criticize a CEO but then people kinda go, "well the law says they have to, not really their fault."
I'm just mentioning this because it always deserves to be mentioned. Shareholder supremacy was ALWAYS nonsense and there's no history of court cases beyond Dodge Brothers v. Ford which doesn't even establish said "fiduciary duty" in any way, shape, or form. If anything it does the opposite.
And how would it even work? How can you prove, "if the CEO had done XYZ differently, we'd have made more money!" Like, you've got a time machine? You can prove you'd have made more money in an alternate, hypothetical timeline? No, you can't sue over that. The recourse is to vote the CEO out of office. Just like how if your mayor is an asshole you can't sue them for "not being a better mayor." Like, even theoretically if the justice system did let you do that, you'd never be able to prove it. You can sue them for breaking the law maybe, just as shareholders can sue execs for breaking the law, but you can't sue because of your own personal disapproval.
There is no "the CEO is doing it because fiduciary duty." No, the CEO is doing CEO things because the board is composed of his buddies that are also in on the grift. We really have to stomp out this notion that CEOs are just somehow innocent bystanders of the system.
Upvote
185
(195
/
-10)
Again: at literally any other company with any other board, this would violate COI policy and end their position immediately.
If they pay him to do his AI research at Tesla, he will fleece Tesla's coffers and send the labor and hardware to X AI or whatever. If they don't, he may fuck off and do his shit at X AI (but I doubt it, his wealth is in the fraud perpetuated at Tesla and the moment he either walks away or is otherwise removed, it collapses to reality).
Regardless of what happens in a few days with the compensation vote, the lawsuits involving it will continue for years to come. And Tesla will continue to underdeliver at its core business...cars.
If we're lucky, someday they will replace Enron in college business classes with Tesla on how fraud is bad.
If they pay him to do his AI research at Tesla, he will fleece Tesla's coffers and send the labor and hardware to X AI or whatever. If they don't, he may fuck off and do his shit at X AI (but I doubt it, his wealth is in the fraud perpetuated at Tesla and the moment he either walks away or is otherwise removed, it collapses to reality).
Regardless of what happens in a few days with the compensation vote, the lawsuits involving it will continue for years to come. And Tesla will continue to underdeliver at its core business...cars.
If we're lucky, someday they will replace Enron in college business classes with Tesla on how fraud is bad.
Upvote
74
(77
/
-3)
Upvote
54
(57
/
-3)
Grifters gonna grift I guess. At this point the shareholders need to file a lawsuit against him and the board to remove them or reign them in. And who wants to bet that if reigned in Mush would rage quit just like he did when he realized joining the Twitter board would be actual work and not a lot of power for himself?
Upvote
40
(44
/
-4)
When you can’t even stay above board long enough to get your (hopefully) $56 billion payout. This man has the self control of a typical teenager.
Upvote
53
(56
/
-3)
It's actually worse than that, the board are in Musks pocket. They're his hand picked friends and family who will do whatever he wants both to stay in his inner circle and because it helps enrich themselves too. They only care about the stock insomuch as they want to keep Mush generating hype to keep the stock bubble gravy train going
Upvote
82
(82
/
0)
I think Twitter paid for the GPUs it received. At least, one really hopes so or this is just a straight-up $500 million theft, I think.
Upvote
99
(101
/
-2)
Upvote
165
(167
/
-2)
[quote}"Elon prioritizing X H100 GPU cluster deployment at X versus Tesla by redirecting 12k of shipped H100 GPUs originally slated for Tesla to X instead. In exchange, original X orders of 12k H100 slated for Jan and June to be redirected to Tesla."[/quote]
IANAL but that in and unto itself doesn't seem to be a violation unless it can be shown that a) Tesla paid for the X order or b) it had a material impact on Tesla's revenue due to delayed product development that required those devices.
Now syphoning off money to build a CEO mansion would be fraud, unless reported to the IRS as CEO compensation with appropriate tax withholdings. Or working for X and charging salary to Tesla, though probably harder to prove in court.
I do feel sorry for Musk with his pay package falling from $56B to $46B. I mean, my god, his child(ren?) need braces.
IANAL but that in and unto itself doesn't seem to be a violation unless it can be shown that a) Tesla paid for the X order or b) it had a material impact on Tesla's revenue due to delayed product development that required those devices.
Now syphoning off money to build a CEO mansion would be fraud, unless reported to the IRS as CEO compensation with appropriate tax withholdings. Or working for X and charging salary to Tesla, though probably harder to prove in court.
I do feel sorry for Musk with his pay package falling from $56B to $46B. I mean, my god, his child(ren?) need braces.
Upvote
30
(34
/
-4)
And this is why he should get paid $56 billion as Tesla CEO? He isn't even doing that job.
What a joke. This guy is the example that holds up how CEOs are the most coddled, overpaid people on the planet. Its such an easy job that he can do it at multiple companies at the same time (badly) with zero consequences despite spending most of his time shitposting on Xitter.
What a joke. This guy is the example that holds up how CEOs are the most coddled, overpaid people on the planet. Its such an easy job that he can do it at multiple companies at the same time (badly) with zero consequences despite spending most of his time shitposting on Xitter.
Upvote
96
(98
/
-2)
Or in this case, using collectively owned pooled assets as your personal property to enrich yourself and transfer wealth to your other personal ventures.
Upvote
51
(51
/
0)
IncorrigibleTroll
Ars Tribunus Angusticlavius
Where are you seeing that? The article is a bit muddy there or my reading comprehension is taking the day off.
Ah, just noticed Dr. Gitlin's comment.
Upvote
21
(21
/
0)
Tesla is an enormous bubble, only propped up by Musk's reality distortion field. Everyone who has the power to remove him knows that as soon as that happens, their stock will fall through the floor. They won't do it. He will either need to be thrown in jail or actually manage to bankrupt the company to get thrown out of his CEO job so long as the stock is still in its bubble phase.
His job performance is the stock price. Nothing else.
His job performance is the stock price. Nothing else.
Upvote
77
(79
/
-2)