Judge Lets Tesla Lawsuit Move Forward

Elon Musk Tesla

Estranged Tesla “co-founder” Martin Eberhard won a small victory in court, when a judge ruled that his libal lawsuit against the company could move forward.

(Eberhard has accused CEO Elon Musk of improperly forcing him out and then trashing his reputation in the media)

San Jose Business Journals: Eberhard’s lawyer, Yosef Peretz, said the judge’s ruling says Eberhard’s lawsuit could prevail and thus may continue.

“We are quite pleased with the judge’s ruling and will proceed with the litigation of the lawsuit,” Peretz said.

The court, however, declined to define whether Eberhard can claim to be one of two founders of Tesla. That is a finding of fact that isn’t appropriate at this stage of the proceedings, the judge ruled.

Tesla tried spinning the result as a positive.

Earth2Tech: “Would we have liked to see the entire case dismissed? Yes,” Tesla spokesperson Rachel Konrad told us after the ruling today. “But we’re very happy about the founder issue,” she said, referring to the court’s decision to not define what it means to be a founder. However, Tesla interpreted the ruling in its own way in a statement saying that “the judge struck down Eberhard’s claim asking to be ‘declared’ one of only two founders”. We asked Eberhard’s lawyer, Yosef Peretz, to comment on Tesla’s interpretation of the ruling and he said, “They can say whatever they want. They’ve been spinning this for months.”

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