Tesla Motors Inc (TSLA) Sued In U.K.

Thursday 26 March 2015 at 17:28
Thursday 26 March 2015 at 17:28
Tesla stock

Tesla Motors is facing a lawsuit in United Kingdom due to allegations that it interfered its competitor’s plan to roll out charging stations in the country’s highway rest stops.

Allegations against Tesla Motors (TSLA)

Ecotricity, the leading green energy supplier in Britain filed the lawsuit against Tesla Motors Inc (NASDAQ:TSLA) alleging that the electric car manufacturer tried to strike a deal with its partners behind its back by using its confidential information.

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The British green energy supplier alleged that the American electric car manufacturer tried to persuade Welcome Break Group and other highway rest stop companies to break their agreements with Ecotricity.

Tesla Motors allegedly tied to use Ecotricity’s confidential information to pursue its objective to obtain exclusive charging stations from the highway rest stop companies when the Model S became available in the United Kingdom.

Dale Vince, founder of Ecotricity issued an official statement last summer that his company signed a mutual non-disclosure agreement with Tesla Motors. According to him Ecotricity helped design Tesla Motor’s networks, showed the best locations, and introduced to its landlords and partners. Electrocity also started building the first two chargers for Tesla Motors to be ready for the launching of the Model S in UK.

Judge orders Tesla Motors, Ecotricity to submit additional documentary evidence

On Wednesday, British High Court Judge Dame Vivien Rose ordered Tesla Motors Inc (NASDAQ:TSLA) and Ecotricity to submit additional documentary evidence.

Judge Rose asked the electric car manufacturer to provide documents related to its discussions and internal meetings with other companies regarding its plan to build charging stations for electric cars.

“There do seem to have been meetings in October, 2014 [with motorway service providers]. Something more is needed to be absolutely sure that there’s nothing more,” said Judge Rose.

On the other hand, Judge Rose ordered Ecotricity to submit financial records, strategy documents and modeling to support its claims that it can use exclusive agreements to prevent Tesla Motors from accessing motorway sites by April 22.

In addition, the judge also ordered Ecotricity to produce any documents to prove its claimed losses and search the files of its financial officer.

In statement to Transport Evolved, Ricardo Reyes, chief of communications at Tesla Motors emphasized that the company succeeded during the hearing on the case brought by Ecotricity. According to him, Tesla Motors won the vast majority of the matter before the court.

Tesla Motors counter-sued Ecotricity

Reyes added that Tesla Motors Inc (NASDAQ:TSLA) filed a counter suit against Ecotricity for violating antitrust laws. The electric car manufacturer alleged that the British green energy supplier is abusing its dominant position.

“Ecotricity is fighting to prevent anyone else from offering electric charging services on the motorways…We encourage other companies to provide charging solutions of their own. Ultimately, if not addressed, the victims of Ecotricity’s anti-competitive behavior will be consumers and innovation,” said Reyes.

Marie received her Bachelors Degree in Mass Communication from New Era University. She is a former news writer and program producer for Nation Broadcasting Corporation (NBC-DZAR 1026), a nationwide AM radio station. She was also involved in events management. Marie was also a former Young Ambassador of Goodwill during the 26th Ship for Southeast Asian Youth Program (SSEAYP). She loves to read, travel and take photographs. She considers gardening a therapy.


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