Tesla and Rivian are moving toward resolving a long-standing legal dispute over allegations of employee poaching and trade secret theft. Tesla, which initiated the lawsuit in 2020, recently informed a California judge that the two companies have reached a “conditional” settlement. A dismissal of the case is expected by December 24, according to Bloomberg.
The lawsuit stems from claims by Tesla that Rivian engaged in targeted recruitment of Tesla employees and encouraged them to take proprietary information upon leaving. Tesla identified what it described as an “alarming pattern,” accusing Rivian of obtaining “highly valuable, confidential information” through three employees who joined Rivian from Tesla. Rivian has consistently denied these allegations, calling them “baseless” and arguing that Tesla’s legal action was an attempt to impede Rivian’s progress and intimidate potential defectors from Tesla.
Earlier this year, a California judge denied Rivian’s motion to dismiss the lawsuit and tentatively ruled that the case could proceed to trial. A trial had initially been scheduled for March 2025, with Tesla’s lawsuit accusing Rivian of intentional misconduct and seeking damages. However, the recent conditional settlement signals that the case could conclude without a courtroom battle.
While Tesla has not issued a comment on the potential resolution, Rivian has also refrained from discussing the litigation publicly. If the dismissal proceeds as expected, it could mark the end of a four-year legal confrontation between two electric vehicle industry leaders.
Featured Image courtesy of Yuki Iwamura/Bloomberg
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