We’ve learned that the civil lawsuit filed by Martin Eberhard, co-founder of Tesla Motors, against his former colleagues, specifically company CEO Elon Musk, has been thrown out of the window.

According to the San Mateo Superior Court of the State of California, Eberhard voluntarily dropped the lawsuit, prompting rumors that both parties may have come to some sort of off-court settlement.

No further developments have arisen, mostly because both parties have been advised by their legal councils to keep mum on the issue, although the complainant’s lawyers have said that further details would be disclosed in the coming months.

As you may recall, Eberhard filed a lawsuit against Tesla and Musk for being defamed by the company, including Musk claiming that the alone – not with the help of Eberhard – was responsible for the founding of the highly-successful electric roadster. IN the lawsuit, Eberhard claimed that Musk “endeavored to take ownership of the idea behind Tesla Motors by denigrating Eberhard’s contributions."

To add insult to injury, Eberhard claims that his Tesla Roadster was damaged before being delivered to him, saying that a Tesla employee smashed the car into the back of a truck during a testing session at the 101 highway.

While we can’t wait for the next chapter of this on-going battle between the two Tesla founders, this rumoured settlement just may have doused
the flames of intrigue from getting any bigger.

Now that Eberhard has dropped the suit, both parties can now move forward with their lives, and for the good of the company, that may very well have been the best decision Eberhard and Lusk ever made.

Source: Inside Line

What do you think?
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  (180) posted on 08.24.2009

You’re right there scooby2. I just wish that this kind of work politics would not affect the quality of the cars they manufacture. There is so much to improve on Tesla’s cars. Maybe that this what they should be fighting about.

  (421) posted on 08.24.2009

It is difficult to know how the proceeding will go in the future but to know that the law suit was thrown means a lot of relief to the other party and a sad scenario for the former Tesla boss. but more than anything else is that fact that the company can now move on and focus.

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