EV Maker Rivian Taps Former Tesla Exec As Top Engineer, Despite Employee Poaching Lawsuit

Amazon.com, Inc AMZN-backed Rivian Automotive Inc. has hired an executive who previously worked for more than a decade at Tesla Inc TSLA to lead its engineering team, Bloomberg reported Thursday.

What Happened: Nick Kalayjian will be joining the Plymouth, Michigan-based automaker as executive vice president of engineering and production, according to a Bloomberg source.

The former Tesla executive takes the place of Mark Vinnels, Rivian’s executive director of engineering, the person familiar with the matter revealed.

Kalayjian’s previous position is listed as senior vice president of Plenty, an indoor vertical farming company, on his LinkedIn profile. 

Why It Matters: The appointment comes as Rivian prepares to start production of its R1T pickup and R1S SUV by mid-2021, Bloomberg noted.

Although not a direct hire from Tesla, Kalayjian's appointment could reportedly further strain relations between the two automakers.

The Elon Musk-led company sued Rivian In July, alleging that the automaker was poaching its employees and stealing secrets. Tesla said there is an “alarming pattern” to Rivian’s employee poaching. 

This month, Rivian accused the rival automaker of damaging its reputation, and asked a court to dismiss the lawsuit, saying, two of the three claims Tesla made were untenable. 

The California-based automaker also sued a former employee last year for stealing secrets on behalf of Alibaba Group Holding Limited BABA-backed Xpeng Motors. 

Price Action: Tesla shares closed nearly 4% higher at 2,238.75 on Thursday and gained 0.37% in the after-hours session.