Musk testifies Tesla has no AGI plans
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- Elon Musk posted on X on March 4 2026 claiming Tesla will be among the first to make AGI in humanoid form.
- Musk testified under oath in an Oakland federal court that Tesla has no concrete plans to pursue AGI, directly contradicting his X post.
- Musk co‑founded OpenAI in December 2015, later pushed it toward for‑profit control, and left the board in February 2018 after failing to secure the CEO role.
- Tesla shareholders sued Musk for breaching fiduciary duty, alleging he diverted AI resources—including GPUs and staff—to his privately held AI company xAI.
- Tesla invested $2 billion in xAI’s Series E round in January 2026, and SpaceX acquired xAI for $250 billion in February 2026, while most xAI co‑founders subsequently departed.
- Musk announced on March 11 2026 a joint xAI‑Tesla “Digital Optimus” project, overturning his earlier claim that Tesla had “no need to license anything from xAI.”
Why it matters: Shareholders gain a concrete admission that Tesla’s AI agenda is being steered by Musk’s personal ventures, while the company loses credibility and market confidence as the trial exposes misaligned promises and resource diversion. Investors may reassess Tesla’s valuation, and regulators could scrutinize the separation of AI assets between Tesla, xAI, and SpaceX, intensifying legal and financial pressures on Musk’s empire.
