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Tesla, Rivian get deadlines from judge in stagnant trade secret lawsuit

(Credit: Tesla, Rivian)

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Tesla has been given thirty days to produce documents relevant to a lawsuit it filed against Rivian Automotive in July 2020, as the nearly stagnated lawsuit has been given deadlines for new developments by Judge Peter Manoukian. Rivian will then have 30 days to respond to Tesla’s requests regarding pretrial information sharing.

In July 2020, Tesla sued Rivian, claiming that the automaker was poaching former Tesla employees, as well as stealing highly-sensitive information that employees may have taken with them to Rivian after leaving Tesla. Tesla filed the complaint in the San Jose, California State Court, stating that “Misappropriating Tesla’s competitively useful confidential information when leaving Tesla for a new employer is obviously wrong and risky.”

Rivian denied involvement and stated that employees are required to confirm “that they have not, and will not, introduce former employers’ intellectual property into Rivian systems.”

Tesla’s Elon Musk talks Rivian lawsuit, “They’re doing bad things, so we sued them”

Rivian pushed back, requesting the Judge throw out the trial. “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,” Rivian said in a rebuttal.

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Over two years later, Judge Peter Manoukian is now giving Tesla 30 days to produce any documents it claims were stolen by employees who left Tesla for Rivian, a report from Bloomberg is now suggesting. Following the closure of Tesla’s 30-day period, Rivian will then have 30 days to respond to Tesla’s requests for pretrial information sharing, which includes details on what steps Rivian took to investigate Tesla’s claims of information or trade secret theft.

Judge Manoukian said the deadlines for both sides are important because they will bring “the best resolution for this important and interesting matter.”

Tesla had another lawsuit nudged forward by a Judge in October. Judge James Donato imposed a deadline for Nikola Motor, stating that a case involving design patents was not closed but was determined to be “administratively closed,” meaning it is of low importance to the court and could be removed from the Judge’s workload. “A technology tutorial is set for January 13, 2022. The claim construction hearing is set for January 27, 2022. The case will remain administratively closed pending further order,” Judge Donato wrote.\

Nikola responded to the ruling with excuses for why it had not presented any new evidence in the case, which Judge Donato called “ostensible” “and “not particularly compelling.” Nikola filed the lawsuit in 2018 and claims that Tesla stole several design patents that would have cost the company of $2 billion in market share. Tesla has stated that there is “no merit” to the claims

I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

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Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Elon Musk

Elon Musk teases Tesla Optimus Gen 3 capabilities: ‘So many improvements’

If you thought Optimus Gen 2 was impressive, Tesla might have a surprise for you.

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Credit: Tesla Optimus | X

Elon Musk has teased that huge improvements are coming to Tesla’s Optimus humanoid robot, which is arguably the product that the company is developing with the most potential for everyday use by consumers and valuation increases from a financial perspective.

Optimus is still in the development stages, but Tesla has made great strides in its development over the past several years. It started as a simple idea that was unveiled with a human being in a spandex suit.

Tesla posts Optimus’ most impressive video demonstration yet

Just a few years later, Tesla has developed several humanoid robot prototypes that have made their way to influencers and have lent a helping hand around the company’s manufacturing facilities.

Tesla has already introduced two generations of Optimus, as the most recent release featured a vast number of improvements from the initial version.

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The following is a list of things Tesla improved upon with Optimus Gen 2 compared to Gen 1:

  • Tesla introduced a weight reduction of roughly 22 pounds, improving efficiency and agility
  • Optimus Gen 2 had a walking speed that improved by 30 percent over Gen 1
  • Tesla developed more capable hands that had 22 degrees of freedom, double that of Gen 1. This improved object handling
  • Optimus Gen 2 had a 2-degree-of-freedom neck, as Gen 1’s was fixed
  • Tesla integrated actuators and sensors for better performance. This includes things like foot force/torque sensing, articulated toe sections that are close to human foot geometry for better balance and movement
  • Optimus Gen 2 has 28 degrees of overall freedom, improving flexibility from the first generation
  • Tesla’s Optimus Gen 2 can do more than Gen 1, and has shown improved motor control and precision, doing things like squats, yoga poses, dancing, and even poaching an egg

These changes essentially brought Tesla closer to what will be the Optimus version that makes it to production. The company has plans to start production for the public in 2026, but some units will be manufactured for internal use within its factories as soon as this year. Tesla has said it could scale to 100,000 units or more by next year.

Musk also revealed to Teslarati recently that the company is in the process of building the production line that will bring manufacturing rates of Optimus to that level.

However, there is another design of Optimus coming, and Musk says it will feature “so many improvements”:

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Tesla has said that Optimus will have the capability to perform tedious and time-consuming tasks like folding laundry, babysitting, cooking, walking the dog, and plenty of other things. However, it will be super impressive to see it do things that require true coordination, like threading a needle, for example.

Musk did not hint toward any specific developments that Tesla will aim for with Optimus Gen 3, but the sky is the limit, especially as it will be performing some manufacturing tasks across its factories.

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Elon Musk

Elon Musk slams Bloomberg’s shocking xAI cash burn claims

Musk stated that “Bloomberg is talking nonsense.”

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Credit: xAI/X

Elon Musk has forcefully rejected Bloomberg News’ claims that his artificial intelligence startup, xAI, is hemorrhaging $1 billion monthly. 

In a post on X, Musk stated that “Bloomberg is talking nonsense.” He also acknowledged an X user’s comment that people “really have no idea what’s at stake” with AI.

Bloomberg‘s Allegations and Musk’s Rebuttal

The Bloomberg News report painted a dire picture of xAI’s finances. Citing people reportedly familiar with the matter, the news outlet claimed that xAI burns $1 billion a month as costs for building advanced AI models outpaced the company’s limited revenues. 

Bloomberg alleged that xAI is planning to spend over half of a proposed $9.3 billion fundraising haul in three months, with a projected $13 billion loss in 2025. The report also claimed that of the $14 billion that xAI has raised since 2023, only $4 billion remained by Q1 2025. Even this amount, the news outlet alleged, will be nearly depleted in Q2.

xAI did not comment on Bloomberg‘s claims, though Elon Musk shared his thoughts on the matter on social media platform X. In response to an X user who quoted the publication’s article, Musk noted that “Bloomberg is talking nonsense.” Musk, however, did not provide further details as to why the publication’s report was fallacious.

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xAI’s Bright Horizon

Despite Bloomberg‘s claims, even the publication noted that xAI’s prospects are promising. The company, now merged with X, aims to leverage the platform’s vast data archives for model training, which could reduce costs compared to rivals like OpenAI. Tapping into X also allows xAI to access real-time information from users across the globe. 

xAI’s valuation reportedly soared to $80 billion by Q1 2025, up from $51 billion in 2024. The AI startup has attracted heavyweight investors such as Andreessen Horowitz, Sequoia Capital, and VY Capital so far, and optimistic projections point to profitability possibly being attained by 2027. This would be quite a feat for xAI as OpenAI, the AI startup’s biggest rival, is still looking at 2029 as the year it could become cash flow positive.

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Elon Musk

xAI supercomputer faces lawsuit over air pollution concerns

NAACP & environmental groups are suing Elon Musk’s xAI over turbine emissions at its Colossus supercomputer site.

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xAI-supercomputer-memphis-environment-pushback
(Credit: xAI)

The xAI supercomputer, Colossus, faces a potential lawsuit from the NAACP and the Southern Environmental Law Center over pollution concerns tied to its gas-powered turbines. The facility has sparked debate over its environmental impact versus economic benefits.

The xAI data center has been operational since last year. The company used pollution-emitting turbines without an air permit, citing a 364-day exemption. Southern Environmental Law Center attorney Patrick Anderson disputed xAI’s exemption, stating: “there is no such exemption for turbines — and that regardless, it has now been more than 364 days.”

The groups issued a 60-day notice of intent to sue under the Clean Air Act, challenging xAI’s permit application under review by the Shelby County Health Department.

According to AP, critics argue the turbines emit smog, carbon dioxide, nitrogen oxides, and formaldehyde, worsening health risks in an area with cancer rates four times the national average.

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“The permit itself says emissions from the site ‘will be an area source for hazardous air pollutants,’” the Southern Environmental Law Center noted, alleging Clean Air Act violations.

Opponents claim xAI installed up to 35 turbines—exceeding the 15 requested—without community oversight, straining Memphis’s power grid.

xAI responded: “The temporary power generation units are operating in compliance with all applicable laws.”

The company highlighted its economic contributions, including billions in investments, millions in taxes, and hundreds of jobs. At an April community meeting, xAI’s Brent Mayo underscored that the “tax revenue will support vital programs like public safety, health, human services, education, firefighters, police, parks, and so much more.” He projected that xAI would generate over $100 million in tax revenue by next year. The company is also investing $35 million in a power substation and $80 million in a water recycling plant.

Additionally, xAI is transitioning to sustainable power, particularly Tesla Megapacks. It is actively working on demobilizing the gas turbines.

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“The temporary natural gas turbines that were being used to power the [xAI’s] Phase I GPUs prior to grid connection are now being demobilized and will be removed from the site over the next two months,” shared the Greater Memphis Chamber. xAI brought Tesla Megapack batteries and a 150-megawatt substation online earlier this year.

Despite xAI’s expansion to a second 1-million-square-foot site, the lawsuit threat underscores tensions between innovation and environmental justice.

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