As Elon Musk moves to dismiss a lawsuit from Tesla shareholders claiming he failed his fiduciary duties, OpenAI is now suing Musk and exposing lies, which could help Tesla shareholders.
It looks like cracks are forming in Elon Musk’s armor of lies.
Musk had previously stated that Tesla would be a major player in AI and that AI products would be critical to Tesla’s future, but in early 2024, the CEO threatened not to build AI products at Tesla if he didn’t get more control over the company by getting more shares.
In short, Tesla shareholders argue that Musk is in breach of his fiduciary duties to shareholders by creating a private company that competes directly with Tesla. The lawsuit also cites similar issues with Musk’s acquisition of Twitter.
This week, Musk and Tesla board members, who are also defendants in the lawsuit for not stopping Musk, have filed to try to dismiss the lawsuit (via Bloomberg):
The shareholder suit by a group of pension funds and other investors “is long on hyperbole but woefully short on well-pled facts,” the board members said in a court filing Monday. “Yet they cannot escape the undeniable reality: Tesla has thrived under this board and CEO, delivering astronomical returns to stockholders while advancing its mission to create sustainable abundance for all.”
It will likely take a while before the lawsuit moves through the court, but in the meantime, Tesla shareholders have found a strong ally: OpenAI.
Musk has long been tormenting OpenAI with lawsuits. Tesla’s CEO co-founded OpenAI as a non-profit in 2015 to develop an artificial general intelligence that positively contributes to humanity.
In early 2018, Musk resigned from OpenAI, citing “conflicts of interest with Tesla.”
At that time, Tesla’s CEO started pushing the automaker increasingly toward self-driving, which he often described as “real-world AI,” and the automaker began to compete for AI talent with OpenAI.
While he was seemingly on good terms with OpenAI after his departure, a few years later, he started publicly criticizing the organization for moving to a limited for-profit model, which they argued was necessary due to the billions of dollars required to build the compute training hardware to have an impact in the AI sector.
Musk even sued the company over the move and repeatedly publicly mocked them.
It hasn’t been clear how serious the legal actions have been since Musk even claimed that he would drop the lawsuit if OpenAI changed its name:
All the documents released by OpenAI as part of the countersuit paint a much clearer picture of Musk’s involvement with AI and how it evolved over the years.
I’ll start with a clear timeline to make it easier to understand.
2010s: Musk has long been fascinated with AI and emerged as one of the most prominent tech voices warning about its dangers.
2015: Musk co-founds OpenAI as a non-profit to try to create a safe AGI.
2017: Musk privately communicates to many people in OpenAI and the AI community that the company needs to switch to a for-profit model and raise billions to be successful due to the cost of AI hardware.
2018: Musk attempted to get control of OpenAI and merge it with Tesla, but this was rejected by OpenAI’s board, which ultimately took investments from Microsoft to start its for-profit arm, as it gave the organization more independence.
2018: Musk leaves OpenAI, citing a conflict of interest with Tesla.
2018-2022: Musk positions Tesla as “the world’s leader in AI”, hires a ton of AI talent, and claims Tesla will “play an important role in AGI”.
2022: Musk sells tens of billions of dollars worth of Tesla stocks, partly to buy an overpriced Twitter.
2023: Shortly after the viral launch of OpenAI’s ChatGPT, Musk creates a new private company, xAI, to develop AI products and compete with OpenAI.
2024: A judge rescinds Musk’s $55 billion Tesla CEO compensation package, which would have increased his stake in Tesla back to where it was before he bought Twitter.
2024: Musk threatens Tesla shareholders that he will not build AI products at Tesla unless he gets more control (aka more shares).
2024: Musk hires Tesla employees for xAI and redirects shipments of AI training compute from Tesla to xAI.
2024: Musk sues OpenAI to try to block its transition into a capped for-profit business.
OpenAI has all the receipts to prove this. I recommend reading all the emails because they give great insights into Musk’s persona and how he presents himself publicly versus what he says privately.
Here are some of the highlights to prove the timeline above:
Early on in the founding of OpenAI in 2015, it was proposed to be a non-profit linked to Y Combinator, Sam Altman’s company at the time, and Musk was already suggesting to make it a regular C corp:
OpenAI shared many internal emails and text messages between the teams, Musk, and Musk’s executive assistant/future baby mama, Shivon Zilis, discussing the need for much more capital, which will require a move to for-profit.
In 2017, as OpenAI was first configuring a potential for-profit arm, Musk tried to take control by asking for preferred shares and a supermajority:
Musk even filed for a new benefit corporation, a for-profit legal structure that aims to generate profits while positively impacting society and/or the environment.
Musk’s full-time money manager, Jared Birchall, is listed as the sole director of the new corporation.
OpenAI rejected Musk’s proposal as it would have given him complete control, but they insisted they still wanted to work with him.
In early 2018, Musk switched up his proposal to try to get OpenAI attached to Tesla:
This proposal also failed, as OpenAI felt this was also an attempt from Musk to gain complete control.
Musk then left OpenAI and focused his AI efforts on Tesla until he significantly reduced his stake in the company to buy Twitter on a whim.
Then, he founded xAI to become his main AI effort as a private company under his control while telling Tesla shareholders that the company was an “AI and robotics play.”
xAI recently absorbed X (Twitter), resulting in a $125 billion company based on Musk’s made-up valuation.
Electrek’s Take
This is extremely revealing. It clearly shows that Musk’s main goal is to have complete control over AI.
He tried to get control of OpenAI, but couldn’t make it work. He then tried to make it work with Tesla, but he screwed up by giving up some control (I’d argue he still has a firm hold on the public company) through the acquisition of Twitter.
He panicked after OpenAI launched ChatGPT and started xAI as a private company entirely under his control, devaluing Tesla in the process – hence the current shareholders’ lawsuit.
For years, Musk attacked OpenAI and lied to the public about disagreeing with the for-profit transition, when he was actually pushing for it since the very beginning. The only difference is that OpenAI was now a competitor to Tesla, and then xAI.
I want to be clear here. OpenAI is not completely clean, either. It obviously owes Musk something for the company’s original funding, but the emails also reveal that the organization tried to give him shares and pay him back, but Musk refused.
His refusal is likely linked to his believing that he could do more damage by suing OpenAI.
It looks like Musk believes that he is some sort of super genius who deserves to be the one in control of a potential future AGI, and he was willing to lie and cheat his way into making it happen.
Even if his intentions are good, that’s a scary thought.
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If you live in or develop apartments in California, there’s fresh cash on the table to get Level 2 EV chargers installed. The Communities in Charge project, backed by the California Energy Commission’s Clean Transportation Program, just opened a new funding lane worth up to $56.5 million for multi-family housing and nearby spots where tenants can plug in.
How it works
Who can apply? California property owners or stakeholders ready to install Level 2 chargers at multi-family and adjacent tenant-accessible sites.
When? Applications opened today at 9 am PT and run through January 9, 2026, at 5 pm PT.
What’s covered? Up to $8,500 per Level 2 port. Starting in October, the program will also kick in $2,000 per publicly accessible Level 1 port. Extra “plus-ups” are available for Tribal communities.
Equity first: An equity-based scoring system bumps projects that serve disadvantaged, low-income, and Tribal areas to the front of the line.
The project is run by CALSTART (with GRID Alternatives and Tetra Tech riding shotgun). CALSTART already oversees more than $1 billion in national clean-transportation incentives.
“This funding wave marks a critical step in making electric vehicle charging accessible to more Californians, no matter the type of housing,” said Stacey Simms, CALSTART’s senior director of clean fuels and infrastructure. “By dedicating funding to this housing sector, we’re ensuring that infrastructure barriers are broken down so that multi-family housing residents can go electric at home.”
What happens after you click ‘submit’
Applications roll in through the Incentive Processing Center and get reviewed as they arrive:
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Readiness Tier 1 (projects that can basically start tomorrow) snag an immediate “Notice of Final Award.”
Readiness Tier 2 candidates get a “Notice of Conditional Award” and 90 days to hand in extra paperwork before they secure their final green light.
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Rivian just posted its more recent letter to shareholders outlining its progress and financial numbers from Q2 2025. We have already covered much of Rivian’s Q2 achievements outlined in the letter. However, we have gained a clearer understanding of where the American automaker stands on production numbers, revenue, and gross profit through half the year as it continues to gear up for the start of R2 production next year.
While Q2 2025 is by no means the worst report from Rivian, it’s not the most exciting from a financial outlook. However, the American automaker does point out several impressive milestones and investments it solidified the previous three months.
For example, Rivian shared news of a fresh equity investment of $1 billion from Volkswagen Group, part of a larger $5.8 billion agreement joint venture between the two OEMs.
As we pointed out in July, Rivian has been expanding its global footprint, announcing a new UK office in addition to a shiny new East Coast headquarters located outside of Atlanta, not far from where its second EV manufacturing facility will eventually operate.
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Q2 2025 also marked Rivian’s initial sales of its second-generation Quad Motor R1 models. Speaking of new models, Rivian CEO RJ Scaringe shared several progress updates of the new R2 throughout Q2 2025, and today’s letter to shareholders continues to detail steady progress for the highly anticipated EV.
Let’s dig into the full report, shall we?
Rivian R2 midsize electric SUV (Source: Rivian)
Rivian expects higher Q3 2025 deliveries compared to Q2
As announced before the full Q2 2025 report, Rivian’s BEV production was way down, completing a mere 5,979 vehicles in Normal, IL, compared to 14,611 a quarter prior. That said, Rivian deliveries were up in Q2 (10,661 vs. 8,640 in Q1 2025).
Rivian cited the reason for limiting production last quarter as “primarily due to a variety of supply chain complexities partially driven by shifts in trade policy.” Despite the lower production numbers, Rivian said it is staying pat on its delivery guidance for 2025 and expects to have an even better Q3 2025. Per the shareholder letter:
We are maintaining the range of our delivery guidance to 40,000 – 46,000. We anticipate the third quarter to be our peak delivery quarter of the year across both our consumer and commercial vehicles. Due to some of the recent changes associated with regulatory credits and our second quarter performance, we are increasing our guidance for adjusted EBITDA losses to ($2,000) million – ($2,250) million.
Total revenues were up in Q2 2025 by both quarter and year-over-year, but Rivian’s total cost of revenues increased, leaving gross profits at an (unaudited) plateau. Same as last quarter, Rivian still expects its 2025 capital expenditures to land somewhere between $1.8 and $1.9 billion.
Aside from the financials, which you can view in their entirety here, Rivian continues to put a tremendous amount of future success in its upcoming R2 model. Per Rivian, R2 development and launch remain on track. The automaker has essentially completed construction of a new 1.1 million square foot plant expansion in Normal, with production tooling equipment for component manufacturing installations now underway.
Rivian expects to commission the new R2 line in Q3 2025 en route to equipment and production processes validation. As we’ve covered plenty this year, the American automaker is assembling validation prototypes of the R2 on a pilot production line in California.
To make room for R2 production, Rivian will shut down its existing production footprint in Illinois for about three weeks in September. After that, Rivian’s manufacturing capacity will increase to about 215,000 units per year. Per the shareholder letter:
During the second quarter we made significant progress towards our development of R2, and advancements in AI. Due to our sourcing efforts and contracts we have in place, we are confident R2 will launch at an advantaged cost structure as compared to R1 and expect it to have a quick path to positive gross profit.
As always, Rivian will host an audio webcast this afternoon at 2:00 PM PT/5:00 PM ET to discuss its Q2 2025 results and provide a business update. The link to the webcast and shareholder letter is available here.
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All Tesla vehicles are now capable of bidirectional charging (V2X) thanks to an impressive Powerwall competitor, Sigenergy, which can include a universal bidirectional DC charger.
V2X, or bidirectional charging, is becoming a fairly common feature for electric vehicles.
Whether it’s in a reasonably low capacity to power tools and other equipment on the go (V2X), or with higher capacities to power a home (V2H) or send electricity back into the grid for money (V2G).
As a leader in electric vehicles, Tesla was long seen as being reticent in adopting the technology.
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Today, Cybertruck is the only Tesla vehicle that officially supports bidirectional charging and it only works with Tesla’s own Powershare home solution, which still has limitations years after launching. For example, it still doesn’t work with Powerwalls.
And yet, I was surprised to see yesterday a Tesla Model Y send electricity back into a house for the first time.
My friend Sylvain Juteau, President of Roulez Electrique, was showing me the latest addition to his Trois-Rivieres charging station: the Sigenergy DC charging and ESS system. You can watch our video of our full walkthrough of the system here:
I had already heard a bit about Sigenergy and how they were gaining a foothold in the home energy storage market in countries like Australia.
Tesla has been dominating the home energy storage system for years with the Powerwall, but now its supremacy is being challenged, and I’m starting to understand why.
This device is what the Tesla Powerwall was supposed to be.
Tesla is currently on the Powerwall 3, which features some significant improvements in power capacity and solar inverter integration, but it doesn’t have an integrated EV charger.
Sigenergy’s device combines all components into a single, stackable, and expandable system with an incredible user interface.
For a few years now, the industry has had the ISO 15118 international standard for vehicle-to-grid (V2G), and Sigenergy has built a fully certified bidirectional DC charger module that fits with its modular energy storage system.
The system consists of stackable 8 kWh battery modules, with a top module that includes a solar inverter and serves as the brain of the system.
Between them, you can fit this new bidirectional DC charger module. With 3 battery modules (24 kWh), it looks like this:
The system can provide up to 25 kW DC fast charging, allowing you to charge at a rate of 25 kW at home.
It bypasses the onboard charger in your electric vehicle, just like public DC fast-charging stations.
At 25 kW, which is achievable with 3 battery modules and solar, it is certainly not as fast as most public fast-charging stations, but it is a lot more than the generally ~7 kW capacity of a level 2 home charging station.
And the killer feature is that this module is capable of bidirectional charging so it can not only DC charge an EV, but it can also pull DC power from an EV.
The device is available with both CCS and NASC connectors, but bidirectional charging utilizes the CCS protocol.
It means that even Tesla cars with NASC connectors and CCS modules (2019-2021, depending on the model) can use the bidirectional. To be clear, this is unofficially supported by Tesla – meaning that it works, we have tried it, but it’s not something that the automaker officially supports.
Sylvain tried the system on a dozen electric vehicles, and it works perfectly with most of them.
However, not all automakers have adopted the new bidirectional charging standard. In his tests, he found that Ford’s EVs are the ones that work best with it. Most Tesla vehicles tested performed well, but a few would cut off after approximately 5 minutes.
GM’s vehicles were notoriously hard to make work with the DC charger.
Sigenergy’s system is the first to be fully certified to the ISO standard, and they are a bit ahead of the curve. Now, automakers need to fully support the standard to unlock all that potential energy storage capacity.
Electrek’s Take
Can you imagine the value in energy capacity we could unlock if this were widely available? All battery systems become interconnected between cars, homes, and the grid.
You can always have energy go to where it is needed the most.
I think that’s the future of a decentralized energy infrastructure.
I thought that this was Tesla’s plan for the Powerwall. Elon had hinted at this for a while. It would have made a great deal of sense, given that Tesla is both an automaker and a leader in energy storage, but it never happened.
Kudos to Sigenergy for leading the charge here. This is a fascinating product that enables complete control over your energy assets from your electric car to your solar panels.
Take a look at the user interface in Sigenergy’s app:
This is a treasure trove of stats for energy nerds. The first screen is very similar to the Tesla Powerwall app, but the rest provides much more detail. You can see where the energy in your batteries are coming from and where they are going exactly.
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