Trade Secret Battle Between EV Giants Tesla and Rivian Nears End

Tesla is said to have reached a conditional settlement with Rivian over the alleged theft of trade secrets.?

The long-running impasse between the EV manufacturers has been ongoing since 2020 when Elon Musk’s firm claimed its smaller rival had poached Tesla employees to obtain its intellectual property.

The case was set to go to trial in March next year, but that appears to be averted with Bloomberg reporting a California judge has issued a notice of a “conditional” settlement.

Tesla expects the lawsuit to be dismissed by December 24. Details of the settlement have not been disclosed.

Up to this point, the Cybertruck maker alleged an “alarming pattern” with Rivian onboarding its former employees and encouraging them to collate proprietary information. It wasn’t clear exactly what secrets were supposedly lifted, but employees in the lawsuit included an EHS manager, a manager of Tesla’s charging networks, and two recruiters.

The legal action was later expanded with a claim Rivian was “stealing the core technology for its next-generation batteries.”

In response, the Irvine, California-based company hit out at Tesla for their “improper and malicious” attempts to interfere in its progression and scare-tactics towards staff who may be considering moving on.

Rivian Secures Vital Funding Source From Volkswagen Partnership

On November 12, Rivian’s prospects were enhanced with the confirmation of a joint venture with Volkswagen, as the German brand increased its investment with its partner.

An initial commitment from VW to pledge $5 billion was increased to $5.8 billion in a deal centered around sharing technology and mutual benefit. Shares in Rivian spiked 9% on the back of the announcement.

The deal means VW will be able to use its partner’s tech in its own EV projects, while developers and engineers will collaborate in California, with three dedicated plants to be set up later in North America and Europe.