Ex-Tesla Factory Worker Settles Trade Secrets Lawsuit With EV Maker For $400K

Former Tesla Inc TSLA factory worker, Martin Tripp, has agreed to pay the company $400,000 to settle a lawsuit, Bloomberg reports.

What Happened: Tripp's payment is part of the $167 million lawsuit filed by Tesla in 2018 that accused him of illegally divulging trade secrets related to Model 3 production.

Tripp, who worked at the Nevada factory from 2017 to 2018, was fired after Tesla found out he was the source leaking information about Model 3 production delays to reporters. 

Telsa filed a lawsuit against Tripp a day after firing him. Tripp and Tesla CEO Elon Musk have engaged in a public feud since, trading insults.

Tripp claimed that he was a whistleblower and wanted to bring to light Tesla's factory inefficiencies and scrap wastage, which cost the company $150 million, and he countersued Musk for defamation.

Why It Matters: As part of the settlement, Tripp admitted violating trade secret laws and confidentiality agreements and promised to pay Tesla $25,000 for continuing to reveal information about the company despite being ordered to stop by a judge. 

The federal judge also threw out Tripp's case for failing to show that Musk acted with actual malice.

Price Action: TSLA shares closed lower by 3.10% at $567.60 on Monday.

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