Former Employee Sues Tesla For Allegedly Selling Defective Vehicles

By Izza Sofia, 26 Feb 2018

Image via Nadezda Murmakova /

A former Tesla employee has filed a lawsuit against his former employer, alleging that the electric automaker has knowingly sold defective vehicles.

Adam Williams states that during his time at Tesla, he claims that when a customer returned a car because it was essentially a ‘lemon’ (a term used to describe cars with significant defects), the company would go on to sell the vehicle to buyers without mentioning any of the car’s deficiencies, even if they were fixed.

Instead, the suit claims that Tesla categorized such vehicles as “used” or a “demo/loaner.” In effect, Williams argues that Tesla lied to buyers about what they were getting, a practice he believed to be illegal.



Williams worked for Tesla as a “mobile manager” before being fired in September 2017. The plaintiff goes on to claim that he reported the practices to Tesla Semi’s current local manager Jerome Guillen.

However, instead of changing the practices, he asserts that he was demoted and ultimately fired after reporting the practice to his superior.

“There’s no merit to this lawsuit. Mr. Williams’ description of how Tesla sells used or loaner vehicles is totally false and not how we do things at Tesla,” said a company representative.

Read the full lawsuit here.

[via Electrek, opening image via Nadezda Murmakova /]
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