TSLA Stock Rises 4% in Pre-market, Tesla Clinches Victory in Ex-Employee Lawsuit

UTC by Godfrey Benjamin · 3 min read
TSLA Stock Rises 4% in Pre-market, Tesla Clinches Victory in Ex-Employee Lawsuit
Photo: Depositphotos

The news about the victory in the lawsuit filed 2 years ago has pushed the price of Tesla (TSLA) stock higher.

Electric automaker Tesla Inc (NASDAQ: TSLA) has clinched victory in the lawsuit filed in 2018 against its former employee Martin Tripp. As reported by Reuters, Martin was fired for hacking and transferring company data to third parties, according to court documents filed on Thursday.

Meanwhile, after the news, today in the pre-market, TSLA stock is 4.60% up, trading at $442.89.

Martin Tripp, a Tesla (TSLA) employee at the company’s Nevada Gigafactory, had admitted to writing the software that hacked the Tesla’s manufacturing operating system while transferring several gigabytes of its data to third parties while also making false claims to the media. 

Per the Reuters report, the District Court of Nevada in a preliminary ruling had denied Tripp’s motion for leave to file an additional reply to Tesla’s claims citing it as “unnecessary.” The court however declared in its ruling that it will grant Tesla’s motions to seal “because compelling reasons support them, and they are unopposed.”

While the lawsuit saga appears to be over, Tesla’s victory against Martin Tripp shows a divergent case of employee loyalty from the company’s Nevada plant.

Tesla Clinches Victory from Its Nevada Plant in Two Different Ways

The automaker’s Nevada Gigafactory appears to have witnessed different sets of employees whose loyalties have been tested in recent times. While Martin was found guilty to the charges levied against him involving illegally accessing company data and making it available to third parties, an unnamed employee at the Tesla gigafactory however was able to resist a $1 million offer to compromise the company’s data.

As Coinspeaker reported earlier, should the cybersecurity attack, planned by a Russian national named Egor Igorevich Kriuchkov, had been successful, it would have been a very “serious attack” as Tesla CEO Elon Musk confirmed. The attack was planned with the Tesla employee who is described as a Non-US Russian speaking national. After a series of events, the employee was able to reveal the attack plans to the FBI who helped thwart the attack.

Tesla has now experienced the two sides of the coin with respect to employee loyalty, one with Martin Tripp and the other with the unnamed employee.

Tesla Is Not New to Lawsuit

The Elon Musk-led electric auto giant is not new to facing lawsuits both the ones filed by and against it. Back in April, Coinspeaker reported that Elon Musk will face shareholders lawsuit over his “going private” tweets. After a series of bouts of embroilment with the Securities and Exchange Commission (SEC) both Musk and Tesla was forced to pay a $20 million fine each for the tweet.

Elon Musk was very critical of the coronavirus lockdown measures at the early stages of the pandemic, a move which made him sue the Alameda county officials who gave an order to close its Fremont facility. This lawsuit was however dropped after the Fremont facility was given the approval to open.

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