Tuesday, April 15, 2008

Tesla Motors Files Suit Against Competitor Over Design Ideas.

SAN FRANCISCO — Tesla Motors, the Silicon Valley maker of electric sports cars, filed suit in San Mateo Superior Court on Monday against a competing company and two of its employees, saying they stole some of Tesla’s design ideas and trade secrets.

Tesla, which has generated much interest among fans of cars and technology, recently started shipping a two-seat electric sports car in limited quantities. Last year it hired Henrik Fisker, a Danish-born designer who is known for his work on high-end exotic sports cars, to do the body design for a four-seat sedan, code-named White Star.

The Tesla lawsuit contends that Mr. Fisker and his chief operating officer, Bernhard Koehler, doing business under the name Fisker Coachbuild, fraudulently agreed to take on Tesla’s $875,000 design contract to gain access to confidential design information and trade secrets, then announced a competing vehicle. Last fall Mr. Fisker founded Fisker Automotive, which is backed by the venture capital firm Kleiner Perkins Caufield & Byers.

The quarrel sheds a light on the insular world of the Valley’s investors in environmentally friendly technologies. Sergey Brin and Larry Page, whose Google search engine was originally backed by Kleiner Perkins, were both early Tesla investors.

Both the planned Tesla sedan and Mr. Fisker’s recently announced Karma are meant to be hybrid cars using a small gas engine to power a generator that charges a battery, which in turn powers an electric motor. The design, known as a serial hybrid, is thought to greatly extend the range and efficiency of hybrid vehicles.

The Tesla lawsuit states that before doing the design work for Tesla, Mr. Fisker had no experience with hybrid technology. It says that he did substandard work for Tesla, essentially sabotaging it, and then used the revenue from the design contract to develop his company’s car.
“I think it’s ironic that Fisker chose to name his car the Karma, when what he’s done is very bad karma,” said Adam C. Belsky, a lawyer at Gross, Belsky & Alonso who represents Tesla.

Calls to Fisker Automotive were not returned. A person answering the phone at Finck & Dadras, the San Francisco law firm representing Fisker Coachbuild, said it was the firm’s policy not to comment on litigation.

Tesla executives said they decided not to use Mr. Fisker’s design and were starting over on the design for White Star when they discovered that Mr. Fisker was going into competition with them. The design switch caused a three- to six-month delay in production of the car, which is now scheduled to go on sale in 2010, the company said. Tesla is building a factory in New Mexico to manufacture the sedan.

“It caused a slight delay in White Star because we could not use the Fisker styling,” said Elon Musk, chairman of Tesla. “The styling was substandard compared to what he unveiled for his product. He gave us an inferior work product, and it’s obvious why.”

Tesla has scrambled to come up with a new design with some help from Lotus, the maker of the bodies for the initial Tesla Roadster. Mr. Musk said that he was leading the effort.
“‘I’m not really a car designer,” said Mr. Musk, who was one of the founders of PayPal and started SpaceX, a developer of spacecraft. “We’ll see what people think of cars designed by me versus Fisker; it’s the amateur versus the professional.”

The Tesla lawsuit seeks to stop Mr. Fisker from using Tesla design documents, along with a return of the money from the contract and unspecified punitive damages.
Having previously designed cars for BMW and Aston Martin, more recently Mr. Fisker has modified BMW and Mercedes-Benz luxury cars to create even more expensive custom cars that cost as much as $234,000. Tesla’s White Star is expected to cost between $65,000 and $70,000. The Fisker Karma, which is also planned for delivery in 2010, is expected to cost about $80,000.

Source - New York Times

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