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Transmission supplier sues Tesla Motors

The Tesla Roadster
Transport News
Channels: Transport News Tags: electric car

Tesla Motors is an innovator in electric cars, having come out with the first electric sports car. Turns out, it's also got a lawsuit on its hands.

Earth2Tech has dug up a lawsuit filed by Magna Powertrain on 22 February, 2008, that alleges the car company failed to pay Magna for transmission work it accomplished. The suit, filed in the Superior Court of San Mateo County, in California, seeks $5.6 million (£2.9 million) in damages.

This should be an interesting one to watch. Magna no doubt will try to bring a lot of details to light behind the delays that Tesla faced in bringing its Tesla Roadster to market. Tesla, for its part, will also likely highlight the problems it had with Magna's transmissions. Transmission problems were at the heart of the lawsuit.

Ultimately, Tesla swapped transmission suppliers and is working on one of its own. The company also replaced its CEO.

News of the suit follows on the heels of a suit filed by Tesla against Fisker Automotive. Tesla claims that Hendrik Fisker, founder of the eponymous auto company, unlawfully took trade secrets and other intellectual property while performing some design work for Tesla.

Posted: 16 April 2008, 01:12pm by Michael Kanellos
Based on: Transmission supplier sues Tesla on CNET News.com
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