By on June 20, 2018

tesla factory fremont, Image: Tesla Motors

Never far from (or out of) the headlines, Tesla has filed a lawsuit against a former employee, alleging the individual stole confidential data hacked from the automaker’s manufacturing operating system and sent it to third parties. He’s also alleged to have made false claims to the media.

The contents of the lawsuit, filed in federal court in Nevada against former process technician Martin Tripp, can be read here. In it, Tripp is alleged to have written computer code designed to funnel data from the company, installing it on several computers to keep the information flowing.

Tesla claims it is only beginning to “understand the full scope” of the activity, but said Tripp “admitted to writing software that hacked Tesla’s manufacturing operating system (“MOS”) and to transferring several gigabytes of Tesla data to outside entities.”

“This includes dozens of confidential photographs and a video of Tesla’s manufacturing systems,” the automaker writes in the lawsuit.

Besides his own, Tesla alleges Tripp installed the software on three other computers. Not only would this ensure a continued data stream in his absence, but it would implicate other employees in the theft, the lawsuit states.

A story published by Business Insider on June 4th used internal documents and an unnamed source to paint a picture of excessive scrap waste at the automaker’s Gigafactory battery assembly plant in Nevada. Tripp is also said to have told another media outlet that punctured battery cells were knowingly used in production Model 3 vehicles. At the time, Tesla refuted both of these reports.

In the suit, the automaker states “Tripp claimed that punctured battery cells had been used in certain Model 3 vehicles even though no punctured cells were ever used in vehicles, batteries or otherwise. Tripp also vastly exaggerated the true amount and value of “scrap” material that Tesla generated during the manufacturing process, and falsely claimed that Tesla was delayed in bringing new manufacturing equipment online.”

Tesla says it hired Tripp in October 2017, alleging that Tripp later complained his position was not a “sufficiently senior role for him.” He was later reassigned in or around May 17th of this year, the result of what Tesla claims was combative behaviour with his coworkers. Despite signing a routine confidentiality agreement, Tesla claims Tripp retaliated against the company by stealing information and leaking to the media.

The automaker says it confronted Tripp last week. During two days of interviews, Tesla says the employee confessed to the data theft and media leaks, and also to attempting “to recruit additional sources inside the Gigafactory to share confidential Tesla data outside the company.”

Via the suit, Tesla wants the court to order the inspection of Tripp’s computers,
personal USB and electronic storage devices, email accounts, “cloud”-based storage accounts, and mobile phone call and message history to determine the extent to which Tesla trade secrets were wrongfully taken and/or disseminated to others.” It also seeks “punitive” monetary damages — $1 million.

In response to a Twitter query from an Ars Technica reporter, asking whether this lawsuit is the same sabotage Musk warned employees about on the weekend, Musk replied, “There is more, but the actions of a few bad apples will not stop Tesla from reaching its goals.”

Musk’s reference to a “worst 1 in 1,000” ratio (the bad apple ratio, apparently) raised the question of whether we’re seeing the first of many lawsuits. To this, Musk had no answer.

[Image: Tesla]

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15 Comments on “More Intrigue at Tesla As Automaker Sues Former Employee for Data Theft, Media Claims...”


  • avatar
    JohnTaurus

    Oh noes! I hope other automakers don’t learn Tesla’s secrets of how to over-promise and under-deliver! Or how to build cars in tents! Or how to concentrate more on selling hype rather than actual vehicles!

    • 0 avatar
      SCE to AUX

      Tesla accounts for 2/3 of all EV sales, and has had increasing sales since 2012. Is there something more we should be expecting?

      • 0 avatar
        ydnas7

        globally Tesla been losing about 0.5% each year, now its down to about 8-9% globally

      • 0 avatar
        EBFlex

        What is 2/3 of virtually nothing?

        “Is there something more we should be expecting?”

        Profits.
        Competency.
        Quality.
        Reliability.
        Driving software that actually sees traffic.
        Safety.
        Products not to be built in a circus tent.

        You know, virtually all the things you can get in a brand new $12,110 Nissan Versa.

  • avatar
    ClutchCarGo

    If these accusations hold up in court, it’s going to make all those snide comments in yesterday’s report of Musk’s espionage claims look pretty witless.

    • 0 avatar
      civicjohn

      No, the snide comments will remain. The timing of this is incredibly ironic, given the Q2 numbers being delivered to the market in a few weeks.

      Building cars in a tent, inside employee sabotage, “short squeeze of the century”, new factory coming to Germany, $78k dual-motor Model 3, no mention of Semi while other companies are building them, on and on and on.

      If the idiot did what is reported, well, I wouldn’t want to be in his shoes. This is shaping up to be a Harvard business case study.

      • 0 avatar
        ClutchCarGo

        I’m referring to the comments suggesting that Musk was either paranoid crazy or making up the hack in order to make excuses for missing targets. The hubris of believing that the principles of business and manufacturing don’t apply to him is still fair game for snide comments.

        • 0 avatar
          Scandinavian

          The lawsuit alleges he stole data, passed on data to third parties and gave media wrong information. It says nothing about sabotage.

          Information theft and espionage happens to all car companies. And this should not prevent Tesla from meeting production targets.

  • avatar
    Sub-600

    Hopefully Martin is no relation to Linda Tripp and there’s no blue dress involved.

  • avatar
    "scarey"

    “It’s NOT a TOO-MUH !”

  • avatar
    Dilrod

    So much for honor among thieves.

  • avatar
    incautious

    If Tripp’s claims are true esp about defective battery packs being installed in cars, This would be a criminal offense and a serious issue about safety. I would trust Tripp over Musk any day

  • avatar
    pbx

    “During two days of interviews…”? Lead by Elon in a small room stuffed with large men and no air con, food or water, no doubt.

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