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Tesla lawsuit defendant fires lawyers after TSLA short financing is revealed
Tesla’s lawsuit against former employee Martin Tripp has taken an unusual turn.
After publishing a large number of documents and videos online over the last week, including many under a confidentiality order in the case, Tripp has now fired his lawyers and will represent himself moving forward. Notably, this action coincided with the revelation that a TSLA short seller, The Funicular Fund, LP (dba Cable Car Capital LLC), was financing Tripp’s legal defense.
The case has been ongoing since 2018 wherein Tesla filed a complaint alleging that Tripp, a former process technician at Gigafactory 1 in Nevada, had stolen several gigabytes of confidential trade secret information and transferred it to third parties. Tripp denies wrongdoing and claims to be a whistleblower reporting evidence of securities fraud and concerns over safety during early Model 3 manufacturing. He has further filed a counterclaim against Tesla in the case, alleging defamation.
Following a report published by Bloomberg revealing Car Capital’s financial role in the case, Tripp took to Twitter to both double down and explain his actions.
“Why should it be a secret as to who is financing my litigation? …My Attys were certainly secretive, and made it clear that I NOT say a word about it if questioned…,” he wrote. “To be clear…I did NOT accept money to fund my litigation from a ‘short seller.’ I accepted litigation financing from an investor… They DID tell me they short tesla stock (and other stocks if I am not mistaken). But, I don’t give a shit about shorting, whatever the hell it is. I care about, you guessed it…the truth, and being able to fight for it.”
In the documents Tripp published via Google Drive, several letters and two documents titled “Litigation Funding Agreement” revealed that Cable Car Capital had invested $150,000 into Tripp’s defense and another $125,000 was later sought after the first round was near exhaustion. Tesla responded immediately to the revelation and filed an Emergency Motion on Monday demanding Tripp be ordered to stop publishing the information and stop ‘harassing’ the carmaker’s counsel, among other things.
In addition to publishing confidential information, Tripp had also posted a copy of an email from Tesla’s counsel, Jeanine Zalduendo, to his attorneys demanding the cessation of his actions. “No Jeanine, I don’t think I will…,” he wrote on Twitter with an image of the correspondence attached.
The judge in the case, formally Tesla Inc. v. Tripp and assigned number 18-cv-00296 in USDC District of Nevada (Reno), held an emergency court hearing via teleconference the same day of Tesla’s emergency filing. Tripp was ordered to stop publishing and discussing the confidential information and a hearing was scheduled to determine whether he would also be held in contempt of court and face sanctions, according to Bloomberg.
On Tuesday, Tripp’s lawyer filed a Motion to Withdraw as Counsel with Consent, formally ending the firm’s relationship with the defendant. “On August 7, 2020, undersigned counsel received notice via an e-mail sent from Mr. Tripp’s e-mail address that he wished to terminate the attorney-client relationship and represent himself,” the document stated. The former Tesla employee also posted several videos on YouTube detailing his actions and decision.
Throughout his numerous Twitter discussion threads on the matter in the hours since learning about Tesla’s Emergency Motion, Tripp has continued to discuss the original confidential information in depth. Part of the communications has detailed how difficult it was to obtain legal funding to counter the lawsuit originally. Tripp has also set up a GoFundMe account to assist with both legal expenses and his cost of living in Hungary, where he currently resides.
Tesla’s Emergency Motion can be read below.
Tesla v Tripp – Tesla Emerg… by DJ Ferris on Scribd
Tesla has updated its Robotaxi app so riders can pick which vehicle they want before they book. The latest in-app screens now show two options side by side: the two-seat Cybercab and the four-seat Model Y.
A screenshot circulating Thursday shows the change in practice. In Austin, a rider could choose a gold Cybercab for two people or a Model Y for four. Tesla’s updated description calls Cybercab “our first purpose-built autonomous vehicle,” designed for safety, accessibility, and comfort, and says the lineup is available only through the Robotaxi app.
Tesla has updated their Robotaxi page in the App Store. You’ll be able to select if you want a Cybercab or Model Y Robotaxi.
“Our Robotaxi vehicle lineup now includes Cybercab, our first purpose-built autonomous vehicle. Designed for safety, accessibility and comfort, Cybercab… pic.twitter.com/Jff4klilDr
— Sawyer Merritt (@SawyerMerritt) September 3, 2026
The distinction is more than cosmetic, and it’s important to note that Robotaxi refers to the platform, while Cybercab refers to a vehicle.
Model Y Robotaxis have carried the service since it opened in Austin in mid-2025 and later expanded to Dallas, Houston, and parts of Florida. Those vehicles are converted production SUVs that still have steering wheels and pedals.
Cybercab is different. It has no driver controls, butterfly doors, a low seat height meant to work with wheelchairs, extra trunk space for assistive devices, and braille on the handles. Tesla has registered dozens of the two-seaters with Texas regulators in the days leading up to its September 3 Austin event.
Giving riders a choice lets Tesla match the vehicle to the trip. Most rides involve one or two people, which is where Cybercab is meant to be cheaper and more efficient to operate. Groups of three or four, or anyone who needs more space, can still request a Model Y.
The same app handles booking, payment, cabin settings, and, on Cybercab, features such as phone-based door opening and in-cabin voice controls.
The update does not mean every city suddenly has both cars available. Cybercab support is listed for Austin first, and the purpose-built fleet is still small compared with the existing Model Y roster. Even so, the app change marks a shift from a single-vehicle pilot to a mixed fleet.
Riders can now choose between the compact, purpose-built robotaxi and the familiar SUV that launched the service.
Tesla Cybercab sightings are broadening far and wide, well outside of downtown Austin, Texas, with autonomy in focus as the company plans to launch the all-electric, two-seater this evening in the Lone Star State.
Tesla is set to launch Cybercab to a small group of people this evening in a dedicated event in Austin, Texas. Public details on the event are relatively slim.
However, Tesla’s focus on Cybercab falls well outside of the downtown Austin area and is expanding well across the United States as things continue to move quickly with the company’s autonomous efforts in 2026. Today, various images of Cybercab fleets in interesting locations have started to circulate.
The most notable is a fleet of at least 20 Cybercabs at Miami International Airport in Florida. Spotted last night, the fleet is expansive and is indicative of a looming release of Cybercabs once regulatory boxes are checked off.
Tesla has already been operating the Robotaxi platform in Miami for several months, but this Cybercab fleet at the airport could be joining the ride-hailing platform as approvals arrive:
20+ Cybercabs spotted near Miami international airport. pic.twitter.com/ORLsw8yFhf
— Sawyer Merritt (@SawyerMerritt) September 3, 2026
Another fleet of Cybercabs was spotted at the Devon, PA showroom just outside of Philadelphia. We have seen several Cybercab units testing around the Philadelphia Metro Area, which is interesting considering Tesla does not have any active Robotaxi geofence in Pennsylvania.
Cybercab at the Devon location in PA has multiplied over the weekend. Seeing a few more test vehicles in the lot 👀 pic.twitter.com/DhJT4P1EkU
— Billy (@billykyle) August 22, 2026
Philadelphia would be an ideal location to test ride-hailing due to its dense tourist population, large, sprawling city layout, and to compete with other ride-hailing companies that operate in the city.
Expansive fleets of Cybercabs will be popping up in and around major cities throughout the rest of the year, if we were betting on it. Tesla has made it obvious that the Cybercab rollout will be aggressive and fast-paced, but within reason. Tesla is still prioritizing safety, so these testing phases will likely go on for some period of time before more members of the public are able to snag a Cybercab for a personal chariot.
The Tesla Model Y L is arguably the most hyped trim of the all-electric crossover, other than the Performance configuration that comes with white-knuckle speed and sports car-level handling.
However, it is not all perfect. Tesla owners in China who took delivery of the Model Y L, denoted with an L to highlight its longer wheelbase, are experiencing what they are referring to as “collapsing” of the rear wheels, as suspension issues appear to be an issue with some of the builds.
🚨 Model Y L owners in China report rear suspension sag
• Six-seat long-wheelbase Y. Shanghai. On sale since August 2025
• Owners say the rear tire-to-arch gap shrinks after mileage or a full load. Some cases after about 9,000 km loaded. Others near 30,000 km
• Tesla service… pic.twitter.com/Lr6i5Tbi07— Joe Hansen (@joehansen) September 1, 2026
The gap between the wheel arch and tire has narrowed to the point that “not even a single finger” could fit, according to a report from Car News China. The failures are not tied to a specific mileage, as one owner said that after just 9,000 kilometers (5,600 miles), they noticed the suspension issue when their car was fully loaded.
Another one had the issue at 30,000 kilometers (18,640 miles) and noticed that the wheel gap shrank to two fingers, so not as drastic as the person who reported a similar issue at 9,000 km.
Tesla Model Y L is gaining momentum in China’s premium segment
Along with the visual recognition of the issue, others are saying the sagging is causing abnormal wear on the inside of the tires. Extra weight and instant torque already provide additional stress on the tires in electric vehicles during normal operation, so it is no surprise that this is another complaint.
There has been no recall issued by Tesla, and the company has not yet publicly acknowledged the issue.
Some are suggesting that owners use a “finger test” to self-diagnose whether there is an issue with the suspension. There should be four fingers between the tire and the wheel well; anything less than that starts to get dicey.
Tesla Robotaxi riders will face the best dilemma when booking a ride
Tesla Cybercab sightings broaden well outside of Austin with autonomy in focus
