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Tesla sues former Optimus engineer for stealing trade secrets

Tesla is suing a former engineer who worked on Optimus after he left and immediately started a robotics company that achieved quick development of a hand.

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Credit: Elon Musk | X

Tesla is suing former Optimus engineer Jay Li in federal court after accusing him of stealing trade secrets and using them to enable a startup he founded after he left.

Li is accused of stealing confidential files and using them to help get his company, “Proception,” off to a rocking start. Tesla says the files Li took helped his new startup “shortcut the typical development process” for robot hands, something that took Tesla years to develop and evolve.

The company said in the complaint (via Reuters):

“Through Li’s pilfering, Defendant Proception purportedly achieved in a matter of months what it has taken Tesla over four years, hundreds of employees, and billions of dollars to achieve.”

Li was an employee at Tesla for several years, working on the Optimus sensor team from 2022 to 2024. The company says it utilized and devoted “extraordinary resources” to the development of Optimus, which has come a long way since its unveiling several years ago.

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Li allegedly downloaded confidential files related to Optimus’ robotic hand movement research before departing the company. He did not work on the hands at the time. However, he left and swiftly started Proception, as the suit states the company was founded just six days after he left Tesla.

Proception was gloating about its ability to build robotic hands just five months after the company was founded. Tesla says the hands have “striking similarities” to its own design for Optimus.

The company is looking for monetary damages and a court order that would block Proception from misusing the secrets it accuses Li of taking.

This is not the first suit Tesla has filed over trade secrets and confidential information theft. Recently, it accused German-Canadian dual citizen Klaus Pflugbeil of stealing battery-related secrets. He was arrested and sentenced to two years in prison.

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The U.S. Department of Justice used an undercover sting to arrest Pflugbeil.

Tesla is being represented by Josh Krevitt, Orin Snyder, and Angelique Kaounis of Gibson Dunn & Crutcher.

The case is Tesla Inc. v. Perception Inc., U.S. District Court for the Northern District of California, No. 5:25-cv-04963.

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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

Tesla’s advertising strategy takes a drastic turn, but some are questioning it

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Tesla’s advertising strategy has taken a drastic turn as the company’s upcoming Shareholder Meeting will feature perhaps the most crucial vote in its history: the approval of CEO Elon Musk’s new pay package.

For years, the issue of Tesla’s advertising and marketing strategy has been a major point of conversation for investors in fans. It seems to be split right down the middle, with half wanting Tesla to set aside some money for advertising. The other half, just the opposite.

Tesla has been transparent that the money it would spend on advertising, marketing, and public relations is better set aside for the development of future products.

However, it has recently adopted a different tone in advertising, pushing some commercials on social media platforms like X and Instagram.

For the first time, an ad was seen on streaming services like Paramount+, but it wasn’t promoting Tesla’s products directly. Instead, it was more of a message for shareholders to vote on Musk’s pay package, something Tesla feels is a necessity:

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“The future of Tesla is in your hands,” the ad reads at the end. It seems as if Tesla is taking whatever steps it needs to accomplish the task of getting Musk a new pay package and retaining him as its CEO.

On September 5, Tesla officially outlined its plans for a CEO Performance Award for Musk. It would require him to lift Tesla’s market capitalization to about $8.5 trillion, up from the $1.36 trillion it sits at today.

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It is obvious that Tesla is really hoping to get the pay package passed and is willing to shift some of its budget to encourage shareholders to vote.

However, there are some interesting perspectives on the move, and it’s sort of strange to see Tesla not advertising its vehicles or products, but only its pay package that would get its CEO paid.

Some of those who saw the ad are questioning the strategy:

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Tesla mulls revamping $25k car, strange report claims

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Credit: Tine Rusc

Tesla is reportedly mulling the potential revamp of its $25,000 vehicle project, a strange report claims.

It seems unlikely, especially since Tesla launched two new, more affordable models last week with the Model 3 and Model Y Standard trims.

However, a report from European media outlet 36kr claims Tesla has started to advance two vehicle projects, internally codenamed E41 and D50, in China.

People familiar with the matter reportedly told the outlet that “some design and verification reports of the new projects are inherited from the current Model Y and Model 3.”

Tesla axed one of the Model Y’s best features in ‘Standard’ trims: here’s why

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These new simplified models would be priced between $5,000 and $5,500 cheaper than what the new ‘Standard’ trims cost. The report also claims that these vehicles would be launched only if the new ‘Standard’ models “fall short of sales expectations.”

This report suggests that potentially more affordable models are being offered, but this seems unlikely, considering Tesla launched the two Standard models just last week, and the only truly affordable model it is working on will be the Cybercab.

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However, there is potential for a car to launch that undercuts the newest configurations of the Model 3 and Model Y. As of now, it just seems as if it is something that is far-fetched.

When Tesla’s patent for the unboxed process was published just last month, it seemed more than obvious that the vehicle it would be used for was the Cybercab.

The language used in the patent itself was geared toward more streamlined and quality production and manufacturing, which Tesla must implement to meet the likely demand for the vehicle.

It will be easier to scale vehicles with the unboxed process, and the Cybercab has been routinely mentioned with the sub-$30,000 price tag, even by CEO Elon Musk.

He said during the Q3 2024 Earnings Call:

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“I think having a regular 25K model is pointless. It would be silly. Like it would be completely at odds with what we believe…It’s fully considered cost per mile is what matters. And if you try to make a car that is essentially a hybrid, manual, or automatic car, it’s not going to be as good as a dedicated autonomous car. So, yes, Cybercab is just not going to have steering wheels and pedals.”

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SpaceX aces Starship’s 11th launch with success in every mission objective

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Credit: SpaceX

SpaceX aces its eleventh Starship test launch on Monday evening, marking the company’s second consecutive takeoff that crossed off each of the planned mission objectives.

It was also the final launch of the V2 Starship rocket. The twelfth test flight will feature the larger V3 Starship rocket, followed by V4, which will eventually make the first trip to Mars.

The launch was overwhelmingly successful. In its 12th test flight, SpaceX was able to achieve every major mission objective, including the second successful deployment of Starlink satellite simulators and the relight of a Raptor engine while in space. The latter achievement demonstrated “a critical capability for future deorbit burns,” the company said.

The ship officially launched at 6:23 p.m. local time in Starbase, Texas, with all 33 engines igniting and sending the Ship to space.

Stage separation occurred just over eight minutes later, and Super Heavy started its descent back to the Gulf of America, where it successfully splashed down. The first part of the launch was complete.

Starlink simulators were deployed about twenty-one minutes after launch, as the Pez dispenser sent the faux-satellites out to space without any issue:

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Perhaps the most anticipated part of the launch was with Starship’s banking maneuver and subsequent splashdown in the Indian Ocean.

Prior to Starship 11’s launch and successful re-entry and splashdown, SpaceX had lost a few vehicles during this portion of the previous flights.

However, the company had made tremendous improvements and has now aced two consecutive launches. On Monday, its approach and splashdown were both overwhelmingly successful:

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The re-entry phase of this particular Starship launch aimed to gather data on the performance of the heatshield, SpaceX said. The heatshield was intentionally stressed to its limits to determine how much it could withstand without failing.

SpaceX will now turn its focus to the next vehicles, including V3, which is larger, more capable, and will help the company gather even more information about its launches into space:

CEO Elon Musk has said the third-generation Starship rocket will be built and tested by the end of the year.

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