Tesla Files Lawsuit Seeking Over $1 Billion in Damages from Former Supplier Matthews International

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ICARO Media Group
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17/06/2024 21h20

The electric vehicle (EV) giant lodged the lawsuit in the U.S. District Court for the Northern District of California last Friday, as reported by Reuters.

According to court documents, Tesla claims that Matthews International not only misused its trade secrets concerning dry electrode battery manufacturing equipment but also shared them with rival automakers. Tesla alleges that Matthews sold "machines and other technologies embodying Tesla's trade secrets" to competitors, thus enabling the dissemination of confidential information.

Moreover, Tesla states that Matthews International filed patents, falsely claiming some of the inventions as its own, while actually incorporating private Tesla information. As a result, the lawsuit requests that the court prevent Matthews from further misuse of Tesla's trade secrets, granting Tesla access to the patent applications in question, and seeking monetary damages from the company.

The lawsuit comes at a time when Tesla recently acquired Maxwell Technologies, which gave the company ownership over the dry electrode process. This process is crucial in the production of its 4680 battery cells, which Tesla aims to utilize in its upcoming electric pickup truck, the Cybertruck.

Tesla has gained a reputation for aggressively safeguarding its trade secrets in the past, frequently taking legal action against companies and individuals to protect its intellectual property.

The legal battle between Tesla and Matthews International will likely continue in the U.S. District Court for the Northern District of California. As Tesla seeks damages exceeding $1 billion, the case will undoubtedly attract attention and could have significant implications for the protection of trade secrets in the EV industry.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

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