Rivian Faces Trial for Tesla Trade Theft via Former Employee
In a new chapter unfolding in America’s EV industry, Rivian Automotive Inc (RIVN:US) is due to face trial over accusations that it encouraged former Tesla Inc (TSLA:US) employees to steal trade secrets, according to a tentative ruling by a California judge.
Judge Theodore C. Zayner of the Santa Clara County Superior Court rejected Rivian's request to dismiss the lawsuit, stating that Tesla provided enough evidence to warrant a trial.
The past few months have seen a surge in competition among carmakers. This is further accentuated by Chinese EV makers who have been raging in the market with their affordable and quality offerings. Rivian, on the other hand, unveiled five new models this year: the R2, R3, and R3X were all announced in March, and new second-generation versions of the original R1T truck and R1S SUV have just been released. The company has also been embarking on a $5 billion joint venture with Volkswagen since late June 2024.
With a hearing due this week, it appears the legal troubles for Rivian started back in 2020 when Tesla first sued Rivian, alleging an "alarming pattern" of employee poaching and trade secret theft. Tesla later claimed that some workers were "caught red-handed" misappropriating key technology for its next-generation batteries.
Compared to Tesla, congress members have only sporadically traded RIVN shares. The last reported trade in the auto stock was by Rep. Daniel S. Goldman who purchased between $15,001 and $50,000 worth of Rivian stock on January 31, 2024. He later sold shares in the same value range on March 6, 2024.
On the other hand, TSLA was recently sold by former House Speaker, Nancy Pelosi. She reported her husband, Paul Pelosi’s sale of the stock in the value range of $250,001 to $500,000. The most recent investments in TSLA were by Representatives Josh Gottheimer and Ro Khanna.
RIVN stock is up by 58.95% in the past month while TSLA just saw a decline in share price after market trading hours due to its stalled EV sales growth.
