Tesla reaches 'conditional' settlement in Rivian trade theft suit: report

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Tesla is putting an end to a years-long lawsuit with Rivian next month, after it accused the electric vehicle (EV) company of stealing employees and trade secrets in a lawsuit in 2020.

As detailed in a report from Bloomberg on Friday, Tesla says it has reached a “conditional” settlement with Rivian and it expects to seek dismissal of the trade theft lawsuit by December 24, so long as the terms are met. Tesla didn’t reveal the terms of the settlement in the filing, though it shared the news with a California judge, following the company’s claims that Rivian displayed an “alarming pattern” of poaching employees and stealing intellectual property.

Tesla’s lawyers and Rivian both declined to comment on the report.

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When Tesla initially filed the lawsuit in 2020, the company noted that there may have been multiple employees involved, and the company in 2021 widened the suit to include battery technologies specifically. Rivian has always denied claims that it used poached employees to steal intellectual property, though Tesla even said some were “caught red-handed” stealing the company’s most core technology when lifting batteries.

Tesla’s other lawsuits over trade secrets

Tesla has filed multiple other lawsuits against companies and individuals for allegedly stealing industry secrets over the years.

Not unlike the Rivian case, Tesla sued Chinese EV maker Xpeng Motors in 2019, claiming that a former employee stole specific code related to Autopilot. Tesla later settled with the employee in 2021, and while terms of the settlement were not disclosed for that case either, it was reported that they included a monetary payment made by the defendant.

Last September, Tesla launched a lawsuit against Chinese chip designer Bingling, claiming that the company stole trade secrets. In June, a man also pleaded guilty to stealing proprietary manufacturing information from Tesla with the intent to sell the trade secrets, which included detailed documents and drawings.

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