Tesla Approved to Continue Lawsuit Against Rivian Over Trade Secrets

Last year, Tesla claimed that Rivian had stolen trade secrets from Tesla, and the company has now been approved to move forward with a lawsuit against the electric pickup truck company.

On Monday, Superior Court Judge William Monahan denied a request from Rivian to throw out the claim of misappropriation of trade secrets, as reported by Bloomberg. While Rivian claimed intentional contract interference from Tesla, Monahan stated that the interference was included in the trade secret suit, and thus the lawsuit could continue.

The judge also denied Tesla’s claims that seven of its former employees divulged trade secrets when going to work for Rivian. The original lawsuit claimed that 178 of the company’s former employees went to work for Rivian.

Immediately following the lawsuit, Rivian condemned the suit last August, saying that it was “true speculation.”

Despite the lawsuit, the companies have recently been working together against a number of states which still have automobile direct sales laws which prevent companies like Tesla, Rivian, Lucid Motors, and others from selling directly to their customers. Connecticut was the most recent US state to change such laws, with another bill in Michigan almost banning direct sales, but being denied later by the Senate.