Feeds

Musk/Tesla Motors lawsuit by former exec dropped

Nobody wants to say why

High performance access to file storage

Updated The lawsuit mounted by former Tesla Motors executive Martin Eberhard against the firm and its chief, renowned hecamillionaire tech-biz kingpin Elon Musk, appears to have been dropped.

The San Jose Business Journal reports this week, quoting Eberhard's lawyer, that the suit was dropped two weeks ago at the former CEO's voluntary request.

Eberhard claimed in the suit, mounted in California's superior court in June, that he had various legitimate grievances against Musk and the company. He said that Musk had slandered him, wrongly blaming Eberhard for delays and cost problems in the development of Tesla's flagship Roadster battery sportscar - for now the firm's sole product.

The Roadster problems saw the car late to market and initially supplied with a sub-spec transmission. At one point the firm became perilously short of cash and was compelled to shed employees.

Eberhard also alleged that his promised "Founder's Series" personal Roadster had been supplied "wrecked".

Both Tesla representatives and Musk personally disparaged the allegations, saying they were "twisted and wrong". The firm informed the Reg at the time that "we welcome the opportunity to set the record straight... Tesla will likely be filing counterclaims and in the process present an accurate account of the company's history."

Musk personally cast doubt even on Eberhard's claim to be a co-inventor of the Roadster, writing that he brought no actual technology to the Tesla Motors party:

When I requested through AC Propulsion to meet Eberhard, he had no technology of his own, he did not have a prototype car and he owned no intellectual property relating to electric cars. All he had was a business plan to commercialize the AC Propulsion Tzero electric sports car concept.

In the two weeks since Eberhard dropped his suit, however, Tesla and Musk have remained silent. This could lead one to speculate that the company has been compelled to reach a financial settlement with Eberhard, or perhaps give him a new Roadster.

The Business Journal could apparently elicit no response from Tesla on the matter. The Reg has also asked for comment from the firm, but received no reply as of publication. If we hear anything, we'll let you know. ®

Update

We've now heard back from a Tesla spokesperson, who said "I can't speculate on why Eberhard dropped his suit."

We followed up (after a few minutes), asking why the firm hadn't announced its apparent victory at the time - after all it has been keen to present its views on the matter up that point - and whether Tesla in fact intends any counter-claim against Eberhard.

We've just received an automated message from the spokesperson saying "I am on vacation".

High performance access to file storage

More from The Register

next story
Elon Musk's LEAKY THRUSTER gas stalls Space Station supply run
Helium seeps from Falcon 9 first stage, delays new legs for NASA robonaut
Red-faced LOHAN team 'fesses up in blown SPEARS fuse fiasco
Standing in the corner, big pointy 'D' hats
KILLER SPONGES menacing California coastline
Surfers are safe, crustaceans less so
LOHAN's Punch and Judy show relaunches Thursday
Weather looking good for second pop at test flights
Discovery time for 200m WONDER MATERIALS shaved from 4 MILLENNIA... to 4 years
Alloy, Alloy: Boffins in speed-classification breakthrough
Curiosity finds not-very-Australian-shaped rock on Mars
File under 'messianic pastries' and move on, people
Top Secret US payload launched into space successfully
Clandestine NRO spacecraft sets off on its unknown mission
Get your MOON GEAR: Auction to feature Space Race memorabilia
Keepsakes from early NASA, Soviet programs up for bids
New FEMTO-MOON sighted BIRTHING from Saturn's RING
Icy 'Peggy' looks to be leaving the outer rings
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
HP ArcSight ESM solution helps Finansbank
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.