Tesla’s Former Supplier Says It Won Lawsuit Against EV Maker But VP Disputes Claim

• Matthews said that the arbitrator issued an interim decision denying the broad injunctive relief that Tesla requested, effectively rejecting the EV giant’s efforts at prohibiting the company from selling its dry battery electrode technology and equipment.
• According to CNBC, Tesla sued Matthews in 2024 for allegedly stealing trade secrets related to Tesla’s battery-manufacturing process.
• Tesla VP Eggleston said that the carmaker obtained a permanent injunction preventing further theft from the company.  

Former Tesla supplier Matthews International Corporation (MATW) said on Tuesday that an arbitrator sided with it in an ongoing lawsuit with the EV giant. However, a Vice President of the carmaker disputed the claim in a post on X.

Matthews said that the arbitrator issued an interim decision denying the broad injunctive relief that Tesla (TSLA) requested, effectively rejecting the EV giant’s efforts at prohibiting the company from selling its dry battery electrode technology and equipment. The arbitrator’s decision, however, includes a narrow injunction that prevents Matthews from using certain parts in dry battery electrode machines, the company said.

Matthews said that it already has replacement parts, and the injunction is not expected to materially impede the company’s operations or sales.

According to CNBC, Tesla sued Matthews in 2024 for allegedly stealing trade secrets related to Tesla’s battery-manufacturing process and sharing them with the electric-vehicle giant’s competitors. The EV maker then demanded damages exceeding $1 billion.

Tesla VP Hits Back

Tesla Vice President Bonne Eggleston on Tuesday dismissed the former supplier’s recent statement, saying that Matthews is “publishing complete nonsense” to cover their tracks.

“During our work with Matthews, we caught them red-handed copying our technology—including proprietary software and sensitive mechanical designs—into products for other customers.  For three years they lied about it, tried to hide their dishonesty, and continued to ship our technology to others,” Eggleston said. “Recently, we obtained a permanent injunction preventing further theft from Tesla, with financial damages to be computed.”

Eggleston added that Matthews was found liable for distributing Tesla’s technology into “practically every substantial DBE machine” they have sold.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around TSLA rose from ‘bullish’ to ‘extremely bullish’ territory over the past 24 hours, while message volume stayed at ‘high’ levels.

Meanwhile, sentiment around MATW jumped from ‘neutral’ to ‘bullish’ territory, accompanied by a surge in volume from ‘normal’ to ‘high’ levels.

Shares of TSLA and MATW have jumped 80% and 11%, respectively, over the past 12 months. 

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