Tesla and Rivian are reportedly close to resolving a lawsuit that has spanned four years, with Tesla accusing Rivian of stealing trade secrets through the hiring of former Tesla employees.
The legal dispute began in 2020 when Tesla filed a lawsuit claiming Rivian had encouraged ex-Tesla employees to bring confidential documents and proprietary information to their new roles. Rivian has consistently denied these allegations.
Initially, the accusations were vague, involving employees such as recruiters, an environmental health and safety (EHS) manager, and a manager of Tesla’s charging networks.
Tesla alleged these individuals took “highly sensitive trade secret, confidential, and proprietary engineering information” when they left.
In 2021, Tesla escalated its claims, alleging Rivian specifically targeted Tesla’s next-generation battery technology. Attempts to settle the dispute out of court initially failed, prompting the case to proceed through the legal system.
Now, Tesla has informed a California state court that it anticipates filing for dismissal of the lawsuit by December 24, pending satisfactory completion of settlement terms.
Details of the agreement remain undisclosed, and neither Tesla nor Rivian has commented publicly on the reported resolution.
Tesla has previously positioned itself as open to sharing its patents under specific conditions, allowing other companies to use its technology as long as they agree not to initiate patent litigation against Tesla. In this case, however, Tesla alleged intentional theft of technology, a claim Rivian has steadfastly denied.
The expected settlement marks a potential end to a long-running legal battle that has underscored the high stakes and intense competition in the electric vehicle industry.
