Electric vehicle maker Rivian Automotive Inc. (Nasdaq: RIVN) faces a trial over allegations that the Irvine-based company encouraged its employees who defected from Elon Musk’s Tesla (Nasdaq: TSLA) to steal trade secrets, Reuters reported, citing a tentative ruling issued by a California state judge.
Judge Theodore C. Zayner of the Santa Clara County Superior Court tentatively denied Rivian’s motion to dismiss the lawsuit, stating Tesla presented sufficient evidence for a trial, according to the news agency.
“Tesla’s evidence establishes that some Rivian employees were less thoroughly investigated and not disciplined,” the judge wrote in the tentative order.
Shares in Rivian fell 6.1% to $16.43 apiece for a market cap of $16.4 billion.
