Business

Judge allows Tesla founder's lawsuit to proceed

Posted July 29, 2009 11:00 pm

Associated Press

SAN FRANCISCO -- A judge is allowing to proceed a lawsuit by a founder of Tesla Motors that accuses the electric car maker and its chief executive of libel, slander and other allegations.

Martin Eberhard claims that CEO Elon Musk unfairly blamed him for Tesla's well-documented financial woes in interviews with the media and in postings on the company's blogs. Eberhard also is suing to recover a $100,000 severance package the company took away from him for allegedly violating a non-disparagement agreement.

Yosef Peretz, who represents Eberhard against Tesla and Musk, says a San Mateo County Superior Court judge issued a written tentative ruling Tuesday refusing to toss out the lawsuit.

Musk's lawyers said the judge refused to declare Eberhard one of only two company "founders" and would continue to fight the lawsuit.

Tesla Motors CEO, Chairman and Product Architect Elon Musk speaks in March at the unveiling of the Tesla Model S all-electric 5-door sedan. Associated Press

Article Comments

Article Comments

Guidelines: Keep it civil and on topic; no profanity, vulgarity, slurs or personal attacks. People who harass others or joke about tragedies will be blocked. If a comment violates these standards or our terms of service, click the "flag" link in the lower-right corner of the comment box. To find our more, read our FAQ.