Tesla sues Rivian alleging trade top secret theft by former employees

Tesla sues Rivian alleging trade secret theft by former employees
  • Rivian coached workers into sharing trade secrets from their time at Tesla, according to a new lawsuit. 
  • Tesla claims at the very least six previous employees, and possibly much more, divulged private facts in their new careers at the competitor. 
  • Rivian denies the accusations, saying the alleged steps are “counter to Rivian’s society, ethos and corporate guidelines.”
  • Go to Business Insider’s homepage for a lot more tales.

Tesla has accused the upstart electric powered auto firm Rivian of thieving very confidential trade secrets by means of newly employed personnel.

In a lawsuit filed final 7 days in California, Elon Musk’s electric powered automaker accused the Amazon-backed startup and 4 of its workforce of misappropriating the trade secrets and techniques that violate the former employees’ non-disclosure agreements.

“Rivian instructed just one recently departing Tesla staff about the styles of Tesla confidential details that Rivian wants,” Tesla’s grievance alleges. “Each Rivian and the personnel understood complete nicely that having such details would violate the employee’s non-disclosure obligations to Tesla. However, the worker expropriated for Rivian the exact data Rivian sought — very delicate, trade key information that would give Rivian large aggressive advantage.”

Tesla suggests it caught the culprits “employing not long ago obtained advanced electronic safety checking equipment,” and that it expects a lot more employees to be named in the accommodate as it discovers much more instances of theft. In complete, Tesla states 178 previous personnel have joined Rivian.

Rivian and the 4 unique employees named in the suit did not immediately return requests for comment on the allegations. In a statement to Bloomberg, the organization stated the alleged steps are “counter to Rivian’s society, ethos and corporate procedures.”

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In accordance to Bloomberg, Tesla has formerly submitted lawsuits towards China’s Xpeng Motors and self-driving motor vehicle startup Zoox, which lately struck a deal to be acquired by Amazon.

Previously this thirty day period, Rivian shut a different main funding spherical of $2.5 billion from backers like Amazon, which programs to inevitably use its motor vehicles in its shipping fleet. To day, the corporation — which has but to launch a output automobile — has lifted $6 billion with no valuation attached.

Go through Tesla’s complete grievance:

 

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Sarah Gracie

About the Author: Sarah Gracie

Sarahis a reporter covering Amazon. She previously covered tech and transportation, and she broke stories on Uber's finances, self-driving car program, and cultural crisis. Before that, she covered cybersecurity in finance. Sarah's work has appeared in The Wall Street Journal, Bloomberg, Politico, and the Houston Chronicle.

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