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Tesla (NASDAQ:TSLA) stock is in the news Tuesday after the electric vehicle (EV) company announced a lawsuit against battery supplier Matthews International (NASDAQ:MATW).
Matthews International is a former supplier of EV batteries to Tesla for its vehicles. Tesla’s lawsuit alleges that MATW stole trade secrets from it and shared them with other companies.
Specifically, the lawsuit claims that Matthews International shares trade secrets concerning Tesla’s electrode battery manufacturing technology. Matthews International argues against this claiming this is a bully tactic by Tesla to take its intellectual property.
The lawsuit involves Tesla seeking damages from Matthews International. The company says a conservative estimate of the damages is more than $1 billion. It’s also seeking to block the company from misusing its trade secrets and requests MATW’s patent applications.
TSLA Stock: Tesla Lawsuit Details
Here’s a portion of what Tesla says in its lawsuit against Matthews International, as collected by Electrek:
“First, Matthews improperly incorporated Tesla’s confidential trade secrets into patent filings. By so doing, Matthews unambiguously attempted to claim for itself both ownership and inventorship of Tesla’s confidential trade secrets.
Second, Matthews disclosed Tesla’s confidential trade secrets to other companies, including Tesla competitors. This included Matthews attempting to sell and, in some cases, actually selling equipment for dry-electrode battery manufacturing to Tesla competitors, where said equipment embodied Tesla’s confidential trade secrets.”
TSLA stock is down 1.4%, while MATW stock is down 2% as of Tuesday morning.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
