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Rivian pushes back against Tesla, claims trade secret theft lawsuit spreads FUD

(Credit: Rivian)

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Tesla may have opened its patents to other automakers to help foster the rise of electric cars, but the company still maintains a number of key trade secrets. And as could be seen by Tesla’s legal actions last month, when these trade secrets are allegedly breached, it would not hesitate to file a lawsuit against those responsible, even if the company involved is a fellow electric car maker like Rivian. 

In a lawsuit last month, the Elon Musk-led company claimed that Rivian has been engaging in trade secret theft through employees that are being poached from Tesla. The company noted that it has no issue with its former employees coming over to Rivian, but it draws the line when former staff break their NDAs and transfer sensitive trade secrets to the Detroit-based EV maker. So far, Tesla has accused Rivian of acquiring proprietary information related to its recruiting process, its bonus and compensation plan for sales personnel, and manufacturing project management, to name a few. 

Rivian has denied any wrongdoing, and it has decided to push back against Tesla as well, asking a judge to dismiss the lawsuit from the Silicon Valley-based electric car maker. Rivian argued that two of the three claims in Tesla’s case actually fail to state sufficient allegations of trade secret theft. Instead, the Detroit-based company argued that Tesla’s suit was primarily intended to damage Rivian’s reputation and hurt its recruiting efforts. 

(Credit: Tesla)

“Tesla did not file this case to defend or protect any legitimate intellectual property rights. Tesla sued in an improper and malicious attempt to slow down Rivian’s momentum and attempt to damage Rivian’s brand. And it sued in an abusive attempt to scare employees thinking about leaving Tesla. While Tesla itself recruits employees from other automotive and technology companies, it cries foul to Rivian, which competes, fairly, for this same automotive and technology talent. 

“As is evident from the many defects on the face of its complaint, this lawsuit is driven by these improper aims, and Tesla’s desire to use the judicial system as a prop to deflect attention from Tesla’s own challenges, to foment fear, uncertainty, and doubt about Rivian, and to provide the pretext to disparage Rivian and its own former employees in the press.”

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In a filing with the California Superior Court in Santa Clara on August 10, Rivian noted that it has “rigorous policies and procedures to make sure it does not obtain confidential information from other companies when on-boarding employees.” The company also claimed that none of the alleged stolen Tesla trade secrets have been located at Rivian or in any of its operations. As noted in a TechCrunch report, Rivian argued that since Tesla’s claims are based on speculation and not facts, the Elon Musk-led company could not adequately justify its right to sue. 

(Credit: Rivian)

Interestingly enough, Rivian did not stop there. Pushing further, the Detroit-based EV maker’s legal team argued that Tesla did not really file a case to defend or protect its proprietary information. According to Rivian’s lawyers, Tesla’s lawsuit is actually an “improper and malicious attempt to slow” down Rivian’s momentum, damage its brand, and possibly even scare away its employees. 

“Unfortunately, maligning Rivian was not Tesla’s only ulterior motive. Rather, it crafted its complaint to achieve second improper purpose — namely to send threatening messages to its own employees: don’t dare leave Tesla. Understanding that the strong public policy favoring employee mobility in California restricts the use of non-compete contracts, Tesla’s complaint seeks to punish four of its former employees for leaving Tesla and joining the Rivian team.,” Rivian’s legal team wrote. 

Tesla has so far not released a comment relating to Rivian’s response. Rivian’s response to Tesla could be accessed below.

Tesla Lawsuit Rivian Response by Simon Alvarez on Scribd

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Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Tesla Cybercab includes this small but significant feature

The Cybercab is Tesla’s big plan to introduce fully autonomous ride-sharing in a seamless fashion. In fact, the Full Self-Driving suite was geared toward alleviating the need to manually drive vehicles.

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Credit: Tesla

Tesla Cybercab manufacturing is strikingly close, as the company is still aiming for an April start date. But small and significant features are still being identified for the first time as production units appear all over the country for testing and for regulatory events, like one yesterday in Washington, D.C.

The Cybercab is Tesla’s big plan to introduce fully autonomous ride-sharing in a seamless fashion. In fact, the Full Self-Driving suite was geared toward alleviating the need to manually drive vehicles.

This was for everyone, including the disabled, who are widely reliant on ride-sharing platforms, family members, and medical shuttles for transportation of any kind. Cybercab aims to change that, and Tesla evidently put a focus on those riders while developing the vehicle, evident in a small but significant feature revealed during its appearance in the Nation’s Capital.

Tesla Cybercab display highlights interior wizardry in the small two-seater

Tesla has implemented Braille within the Cybercab to make it easier for blind passengers to utilize the vehicle. On both the ‘Stop/Hazard Lights’ button and the Door Releases, Tesla has placed Braille so that blind passengers can navigate their way through the vehicle:

This is a great addition to the Cybercab, especially as Full Self-Driving has been partially pointed at as a solution for those with disabilities that would keep them from driving themselves from place to place.

It truly is a great addition and just another way that Tesla is showing they are making this massive product inclusive for everyone out there, including those who have not been able to drive due to not having vision.

The Cybercab is set to enter mass production sometime in April, and it will be responsible for launching Tesla’s massive plans for an autonomous ride-sharing program.

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Tesla and xAI team up on massive new project

It is the latest move by a Musk company to automate, streamline, and reduce the manual, monotonous, and tedious work currently performed by humans through AI and robotics development. Digital Optimus will be capable of processing and actioning the past five seconds of a real-time computer screen video and keyboard and mouse actions.

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Credit: Grok

Elon Musk teased a massive new project, to be developed jointly by Tesla and xAI, called “Digital Optimus” or “Macrohard,” the first development under Tesla’s investment agreement with xAI.

Musk announced on X that Digital Optimus will “be capable of emulating the function of entire companies.”

It is the latest move by a Musk company to automate, streamline, and reduce the manual, monotonous, and tedious work currently performed by humans through AI and robotics development. Digital Optimus will be capable of processing and actioning the past five seconds of a real-time computer screen video and keyboard and mouse actions.

Essentially, it will be an AI version of a desk worker in many capacities, including accounting, HR tasks, and others.

Musk said:

“Grok is the master conductor/navigator with deep understanding of the world to direct digital Optimus, which is processing and actioning the past 5 secs of real-time computer screen video and keyboard/mouse actions. Grok is like a much more advanced and sophisticated version of turn-by-turn navigation software. You can think of it as Digital Optimus AI being System 1 (instinctive part of the mind) and Grok being System 2. (thinking part of the mind).”

Its key applications would be used for enterprise automation, simulating entire companies, high-volume repetitive tasks, and potentially, future hybrid use with the Optimus robot, which would handle physical tasks, while Digital Optimus would handle the clerical work.

Tesla announces massive investment into xAI

The creation of a digital AI suite like Digital Optimus would help companies save time and money, as well as become more efficient in their operations through massive scalability. However, there will undoubtedly be concerns from people who are skeptical of a fully-integrated AI workhorse like this one.

From an energy consumption perspective and just a general concern for the human workforce, these types of AI projects are polarizing in nature.

However, Digital Optimus would be a great digital counterpart to Tesla’s physical Optimus robot, as it would be a hyper-efficient addition to any company that is looking for more production for less cost.

Musk maintains that there is no other company on Earth that will be able to do this.

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Tesla China posts strong February wholesale growth at Gigafactory Shanghai

The update was shared by Tesla observers on social media platform X, citing monthly China Passenger Car Association (CPCA) data.

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Credit: Grace Tao/Weibo

Tesla China sold 58,599 vehicles wholesale in February, reflecting strong year-over-year growth. The figure includes both domestic deliveries in China and vehicles exported to international markets.

The update was shared by Tesla observers on social media platform X, citing monthly China Passenger Car Association (CPCA) data.

Tesla’s February wholesale result represents a 91% increase year over year, compared with 30,688 vehicles in February 2025. Month over month, the result was down 15.2% from January, when Tesla China recorded 69,129 wholesale units.

The February total reflects combined sales of the Model 3 and Model Y produced at Gigafactory Shanghai. The facility produces the two vehicles for both domestic sales and exports.

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Gigafactory Shanghai continues to serve as Tesla’s primary vehicle export hub, supplying vehicles to markets across Asia and Europe. Data compiled by Tesla watchers shows that 18,485 vehicles were sold domestically in China in January 2026, while exports accounted for 50,644 units during the same period.

Tesla has also been extending financing programs in China as it pushes to strengthen domestic demand. The company recently extended its seven-year ultra-low-interest and five-year interest-free financing programs through March 31, marking the second extension of the promotion this year.

The financing initiative was first introduced on January 6 as a strategy aimed at offsetting higher ownership costs ahead of China’s planned 5% NEV purchase tax in 2026. The promotion was originally scheduled to expire at the end of January before being extended to February and then again through the end of the first quarter.

Tesla’s efforts come amid growing competition in China’s EV market. According to data compiled by CNEV Post, Tesla’s 2025 retail sales in China reached 625,698 vehicles, representing a 4.78% year-over-year decline. Part of that decline was linked to the Model Y changeover to its updated variant in early 2025, which temporarily reduced deliveries during the transition period.

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