Tesla Motors Founder Sues CEO, Unidentified Others for Libel, Slander and More
By Scott Doggett June 10, 2009
Tesla Motors founder Martin Eberhard (right
) has filed a lawsuit against the automaker's Chairman Elon Musk, the electric-car company and 20 yet-to-be-identified defendants for libel, slander, breach of contract and eight other complaints arising from a slew of allegations that include wrongful damage to Eberhard's reputation and intentional damage to his Founder's Series Production Roadster, which Eberhard estimated to have a future worth of several million dollars.
In the 146-page lawsuit filed May 26 at the Superior Court for San Mateo County, where Tesla Motors maintains its headquarters, Eberhard portrayed himself as a "technological entrepreneur who has spent his life studying and creating innovative technology to improve human society and the environment,"
Musk, Eberhard alleges: "began a campaign to appropriate control of Tesla Motors and of Eberhard's legacy as the company's founder and visionary"; defamed and disparaged Eberhard in the news media; falsely accused Eberhard of being responsible for the Roadster's production delays and for Tesla's financial instability; and a many other not so nice things.
"These actions are remarkable, but they are also part of Musk's broader personal history of misrepresentation - his educational degrees and professional affiliations being symbolic samples - and of the extent of his involvement with other companies, such as PayPal," the complaint alleges.
Musk (left
), who is widely regarded as having co-founded PayPal, SpaceX and Zip2, in a brief email exchange with Green Car Advisor tonight, directed questions to Tesla Motors spokeswoman Rachel Konrad.
Konrad, reached by telephone, described the lawsuit as "an inaccurate account of history, as well as a personal attack. It's twisted and wrong."
She said Tesla Motors expects to file a counterclaim against Eberhard.
In a statement sent to the media late Wednesday, she elaborated:
"This lawsuit is an unfair personal attack and, more importantly, paints an inaccurate picture of Tesla's history. This lawsuit is a fictionalized account of Tesla's early years - it's twisted and wrong, and we welcome the opportunity to set the record straight.
"Martin was unanimously fired by the board, largely over the fact that the cost of the car was more than twice what Martin portrayed it to be at the time. Incidentally, Tesla will also be filing counterclaims and in the process present an accurate account of the company's history."
Green Car Advisor intends to return to this story in coming days, when we've had a chance to sort the fact from fiction and get beyond all this he said, she said stuff (although we'd be first to admit, it does make for compelling reading).
Scott Doggett, Contributor
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