This tactic has been used against companies friends of mine have started. I've only seen it used by large 20+ year old 1970s/1980s publicly traded companies, never someone like Tesla. The way it works is basically that you track where your ex-employees go after they leave. If they go to a competitor/disruptor start-up with out deep pockets, sue that competitor over trade secrets. It's nearly impossible to disprove in court. The competitor start-up exhausts its VC/Angel money on legal fees and goes bankrupt. Potential new customers are wary of using their tech because of the lawsuit. It's a lethal combination that ensures that you don't have to out innovate them. Stealing source code is one thing. I certainly understand suing over that. But, suing over stealing ideas about warehousing from a car company? Really? I don't see any justification for that other than a lack of faith in the ability of your own company to compete and innovate.
Full disclosure: I am shorting TSLA stock. I have worked on autonomous vehicles and do not believe Tesla's claims about their technology. I expect Tesla to go bankrupt sometime in the next few years. I'm even more convinced of this now that I see them using company-killer lawsuits against other competing start-ups.
Full disclosure: I am shorting TSLA stock. I have worked on autonomous vehicles and do not believe Tesla's claims about their technology. I expect Tesla to go bankrupt sometime in the next few years. I'm even more convinced of this now that I see them using company-killer lawsuits against other competing start-ups.