Tesla Files Lawsuit Against Rivian For Stealing Trade Secrets
Close

Tesla Files Lawsuit Against Rivian For Stealing Trade Secrets

Team CARS24
editor
Latest News
Est. Reading Time:
2 mins

Tesla Files Lawsuit Against Rivian For Stealing Trade Secrets

Team CARS24
editor

Famous American carmaker Tesla has been taking the EV world by storm by coming up with rather futuristic products that quickly managed to capture the imagination of many car buyers with their bespoke design, long driving range and autonomous driving technology. With so much going in favour of these cars, it’s actually unfortunate to know that Rivian, another American carmaker, has allegedly stolen trade secrets of Elon Musk’s company. 

Tesla Model Y

As per the latest development, Tesla has even filed a lawsuit against Rivian for stealing its trade secrets. In this lawsuit, the company has named four ex-Tesla employees who, as per the allegations, have wrongfully provided Rivian with details about Tesla’s recruitment practices, salary information, documents related to talent scouting and hiring, and documents related to project management.

As per the official complaint filed by the company, Rivian has been accused of targetting employees of Tesla and encouraging them to provide “highly sensitive, trade secret information that would give Rivian a huge competitive advantage” before asking them to leave their employer for recruitment with Rivian. While these charges are yet to be confirmed by an investigation, they would definitely raise a huge question about the morality of Rivian if found true. 

Meanwhile, Rivian has denied all the claims of Tesla and has said that they have not engaged in any such activity. Rivian has also issued a press note on this that reads – “Upon joining Rivian, we require all employees to confirm that they have not, and will not, introduce former employers’ intellectual property into Rivian systems. This suit’s allegations are baseless and run counter to Rivian’s culture, ethos and corporate policies.”

As per Tesla, Rivian has hired as many as 178 former Tesla employees out which 70 had moved directly from the renowned American electric carmaker to the homegrown competitor. Tesla also says that its investigating team has found that the former employees have mishandled confidential data and even transferred it to their new employer.

It must be noted here that it’s not for the first time that Tesla has sued a competitor over theft of trade secrets. Earlier, Tesla sued Zoox, a self-driving startup that admitted that many of its employees joined the company with possession of important documents from Tesla. However, it didn’t have any knowledge of the same. It should be noted that Rivian is the richest electric vehicle manufacturer in the world by having successfully raised more than 5 billion US dollars. In 2018, it showcased two new vehicles at the LA motor show and gained many eyeballs on the global level.  

Also Read – Tesla Could Establish R&D Centre in India