In June 2018, Tesla brought suit against a disgruntled former employee, Martin Tripp, for trade secret misappropriation. Tesla claims that Mr. Tripp hacked Tesla’s computer system, distributed its proprietary and confidential data to third parties, and distributed photographs and videos of Tesla’s manufacturing facility. In its complaint filed in a U.S. District Court in Nevada, Tesla asserts federal and state trade secret misappropriation, breach of contract, and violations of the Nevada Computer Crimes Law claims against Mr. Tripp. Tesla’s complaint does not identify the specific trade secrets Mr. Tripp is alleged to have disclosed, but alleges that Tesla maintains various methods, systems, and processes as trade secrets and that Mr. Tripp’s conduct revealed unspecified “manufacturing systems.”
Mr. Tripp, on the other hand, tells a different story. Perhaps positioning himself to assert whistleblower immunity under the DTSA, Mr. Tripp claims he shared information with news outlets to expose “some really scary things” going on inside of Tesla after becoming disillusioned with the company’s practices. In particular, Mr. Tripp claims Tesla installed punctured batteries in Model 3 vehicles, improperly disposed of raw-material waste, and inflated sales numbers. Establishing whistleblower immunity under the DTSA, however, may be an uphill battle for Mr. Tripp. The DTSA limits whistleblower immunity to confidential disclosures to the government or attorneys as part of a complaint or other judicial document filed under seal, not leaks to the media. For its part, Tesla has denied Mr. Tripp’s allegations of misconduct.
We will be watching this case to see how it unfolds.