Thursday, 23 July 2020 17:15

Tesla Files Lawsuit Against Rivian On Claims of Stealing Trade Secrets

Written by Andrei Nedelea, Inside EVs

Tesla has filed a lawsuit against Rivian, claiming it has stolen trade secrets and intentionally poaches employees to gain insider info.

The main problem seems to be four particular former Tesla employees, who took proprietary information they should not have.


Automotive News posted an excerpt from the complaint filed by Tesla with a state court in San Jose, CA.


"Misappropriating Tesla’s competitively useful confidential information when leaving Tesla for a new employer is obviously wrong and risky. One would engage in that behavior only for an important benefit---to use it to serve the competitive interests of a new employer," the complaint read.


The source also mentions Rivian has thus far denied the allegations, particularly stating it actually requires newly employed people to confirm they are not bringing intellectual property from former employers with them.


Rivian’s official response also states it "is made up of high-performing, mission-driven teams, and our business model and technology are based on many years of engineering, design and strategy development. This requires the contribution and know-how of thousands of employees from across the technology and automotive spaces."


Tesla was recently confirmed as the world’s most valuable automaker. Its stocks are consistently climbing and the company took the COVID-19 crisis quite well, with production figures only 5% lower than in 2019, even though its main factory was closed for several weeks.


Rivian is still about a year away from making its first production vehicle, but it seems to be doing pretty well too. It already has prototypes out and testing, and they’ve really got people excited. Also, the company recently secured $2.5 billion in new funding after previously receiving $700 million from Amazon, $500 million from Ford and $350 million from Cox Automotive.


We thank Inside EVs for reprint permission. 

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