Tesla has initiated legal action against its former supplier, Matthews International, in a federal court in California, alleging the theft of trade secrets related to its battery manufacturing process.
The lawsuit, filed last Friday in the Northern District of California, contends that Matthews should compensate Elon Musk’s firm for damages potentially exceeding 1 billion dollars (approximately 933 million euros) due to the misuse of proprietary technology in the production of dry electrode batteries.
According to the complaint, Matthews is accused of sharing Tesla’s proprietary developments with unnamed competitors by selling “machines and other technologies that incorporate the company’s trade secrets.”
Additionally, Tesla asserts that Matthews claimed the company’s inventions in patent applications, which disclosed confidential information.
Tesla has requested the court to prevent Matthews from using these trade secrets for its own benefit and to transfer the patent applications containing the confidential information.
The partnership between both companies was established in 2019 under an agreement where the supplier committed to providing the necessary manufacturing machinery.
Consequently, Tesla was compelled to share sensitive information.
Specifically, the trade secrets in question pertain to battery coatings that could significantly reduce the size, cost, energy consumption, and production cycle time of manufacturing plants.
Following the news of the lawsuit, Tesla’s stock surged more than four per cent during Monday’s session on the Nasdaq, trading above 185 dollars (172.86 euros) per share.
