Tesla looks set to settle legal dispute with Rivian

Tesla and Rivian ccould reach a "conditional" settlement the legal dispute between the two carmakers, which has been ongoing since 2020. The lawsuit concerns the question of whether former Tesla employees who left the company disclosed trade secrets to their new employer Rivian.

Image: P3 Group GmbH

The legal dispute between the two US electric car manufacturers has kept lawyers on both sides busy for several years. According to Bloomberg, however, an end to the proceedings is now in sight – in the form of a “conditional settlement,” as the news agency writes with reference to Tesla. Tesla is said to have informed a Californian state judge in a court filing that “it expects to seek dismissal of the case by Dec. 24 upon satisfactory completion of the terms.” What these terms are remains unclear.

For context, Tesla accuses Rivian of profiting from trade secrets that former Tesla employees allegedly stole before going to work for Rivian. Tesla specifically alleged in its lawsuit, filed in July 2020 and revised in 2021, that Rivian directly hired at least 70 of its former employees, some of whom were caught red-handed” of stealing core technology information for Tesla’s next-generation batteries. Rivian has always denied any wrongdoing and says Tesla’s lawsuit is an attempt to hinder competition in the electric car market.

Despite the legal dispute, Rivian and Tesla entered into a charging infrastructure cooperation in June 2023. The legal dispute was extended again just two months later.

bloomberg.com

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