EV makers Tesla (TSLA) and Rivian (RIVN) have reached a “conditional” settlement to end their long-standing legal battle, according to a Bloomberg report. The lawsuit, filed by Tesla in 2020, accused Rivian of intellectual property theft by hiring former Tesla employees.
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Tesla alleged that the employees hired by RIVN, which included engineers and managers, shared sensitive trade secrets and proprietary information, particularly related to battery technology. Meanwhile, Rivian denied any wrongdoing and argued that Tesla’s lawsuit was an attempt to stifle competition in the EV market.
Investors should note that the trial was scheduled to begin in March 2025. However, the case has been resolved before going to the court. Tesla has revealed its intentions to dismiss the lawsuit by December 24, but the specific terms of the settlement remain undisclosed.
TSLA Actively Protects Its Trade Secrets
Beyond its case against Rivian, Tesla has also filed lawsuits against other companies and individuals for stealing trade secrets. It is worth mentioning that in 2019, Tesla filed a lawsuit against Chinese EV maker XPeng Motors (XPEV), accusing a former employee of stealing code for its Autopilot advanced driver-assistance system. Later, the lawsuit was resolved through a monetary settlement with the employee.
Also, Tesla filed a lawsuit against its former supplier, Matthews International, on similar allegations. TSLA claimed that Matthews attempted patent infringement related to its EV battery technology.
These legal actions reflect Tesla’s commitment to protect its intellectual property and maintain a competitive edge in the EV market.
Is TSLA Stock a Buy?
Turning to Wall Street, TSLA has a Hold consensus rating based on 11 Buys, 14 Holds, and nine Sells assigned in the last three months. At $232.64, the average Tesla price target implies a 34.01% downside potential. Shares of the company have gained 42% year-to-date.
Is RIVN Stock a Good Buy?
Overall, RIVN has a Moderate Buy consensus rating based on nine Buys, 11 Holds, and one Sell assigned in the last three months. At $15, the average Rivian price target implies a 46.48% upside potential. Shares of the company have declined 56% year-to-date.
