Rivian to face trial over Tesla tech theft claims, judge says

Rivian Automotive Inc. will likely be forced to go to trial over claims that it encouraged employees who defected from Tesla Inc. to steal electric vehicle trade secrets.

A California state judge on Tuesday issued a tentative ruling denying Rivian’s request to dismiss the claims.

Tesla presented enough evidence to warrant a trial and “persuasively argues that Rivian could have conducted a more thorough investigation with respect to some of its employees," Santa Clara County Superior Court Judge Theodore C. Zayner wrote.

Both companies have been grappling with sales slumps amid a slowdown in demand for electric vehicles. Rivian has struggled to ramp up production and deliveries of its electric pickup and SUV models and said in March it would halt plans to build a multibillion-dollar factory in Georgia.

Rivian and Tesla didn’t immediately respond to requests for comment.

The judge is scheduled to hold a hearing Wednesday before he finalizes his order.

The legal fight began four years ago when Elon Musk’s EV maker accused Rivian in a lawsuit of an “alarming pattern" of poaching its employees and stealing trade secrets. Tesla later said some workers were “caught red-handed" misappropriating core technology for its next-generation batteries.

Last year, almost a dozen ex-Tesla employees who left for Rivian lost a bid to avoid a trial over claims they breached Tesla confidentiality agreements before they joined its upstart rival.

Rivian has denied wrongdoing and said Tesla’s lawsuit is an effort to thwart competition in the electric vehicle market.

In its bid to avoid a trial, Rivian argued that it investigated allegations of trade secret theft and took some disciplinary actions. But the judge found that the company didn’t conclusively prove that its probe was adequate.

The case is Tesla Inc. v. Rivian Automotive Inc., 20CV368472, California Superior Court, Santa Clara County (San Jose).

Get insights into Upcoming Cars In India, Electric Vehicles, Upcoming Bikes in India and cutting-edge technology transforming the automotive landscape.