Tesla sues ex-employee for hacking, theft, and leaking to the press
theverge.com
theverge.com
(17 line summary is on page 2)
It's based substantially on the "scrap material" leak to Business Insider published June 4: http://www.businessinsider.com/tesla-model-3-scrap-waste-hig...
As a layman, that seems pretty damming to me, but who knows, it may not mean anything. I wonder if he had an opportunity to speak with a lawyer before admitting that he did that.
That's actually more a matter of the rules of evidence. Generally extrajudicial statements are considered inadmissible hearsay for trial purposes unless one of a number of exceptions applies. In this case, the statement against (self) interest exception would likely apply. (Other exceptions to hearsay might also apply.)
I wasn't trying to give a lecture on the meaning of hearsay. But if you want to get didactic, the statement must be made by an opposing party and offered against them (i.e., is against their interests). A statement that is offered in support of an opposing party is, oddly enough, still hearsay. I have actually dealt with that issue in district court. This can happen in multi-party litigation, where you have cross-claims. For example, X, Y, and Z are parties to a lawsuit and have claims/counter-claims, cross-claims against each other. A statement by Y entered by X against Y would be admissible, but a statement by Y entered by Z could not be used in support of Y.
... well, any context involving American citizens under American court jurisdiction. (Cases involving incidents in the armed forces comes to mind as an exception -- that's under a separate armed forces court jurisdiction, where the rules are different. No asking to speak to legal counsel when your Sergeant yells "go!" :-) )
Although the parent was referring to the fact that you have a right to have an attorney present for any police questioning. But again, that does not apply here, since the police presumably weren't the ones doing the questioning.
> Beyond the misconduct to which Tripp admitted, he also wrote computer code to periodically export Tesla’s data off its network and into the hands of third parties. His hacking software was operating on three separate computer systems of other individuals at Tesla so that the data would be exported even after he left the company and so that those individuals would be falsely implicated as guilty parties.
Good grief, that's nasty.
https://assets.documentcloud.org/documents/4529155/Gov-Uscou...
Doesn't look like your typical anything to me.
How do you expect to join a company and get promoted within an year?
This feels like an unfair expectation to even begin with.
And this is why I habitually fuck with peoples computers when they leave them unlocked. As annoying as it is to find your keyboard is dvorak and your mouse pointer is invisible - it's better than finding out that your credentials are being misused for properly nefarious things...
"But Tripp told CNN he was fired within the last week and sued by Tesla because he was trying to warn investors and the public about problems at the electric carmaker. He said that he discovered that 1,100 damaged battery modules were installed in Model 3 cars that are on the road today. He said that he was also concerned about excessive scrap that is being stored in a dangerous manner on Tesla's property in Nevada that will be expensive to safely dispose of in the future. And he claims that Tesla inflated the number of Model 3's it made when it said it had built 2,020 of the cars in the seven days prior to a much anticipated April 3 report. Tripp said the actual number is closer to 1,900."
http://money.cnn.com/2018/06/20/technology/tesla-sues-employ...
he was trying to warn investors
Whistleblowers don't warn investors, they contact regulators.And it gives them no gain.
It certainly seems like he was rightfully critical and agressive on Monday now that all the facts have come out.
Also, this is someone at the battery factory in Nevada, not the auto plant in Fremont. So this is totally unrelated to the auto plant problems.
Tesla will have a hard time showing actual losses from this.
Martin Tripp email, Sunday 11:57pm: "I was dismayed to learn this weekend about a Tesla employee who had conducted quite extensive and damaging sabotage to our operations..." (scroll down for text) https://www.cnbc.com/2018/06/18/elon-musk-email-employee-con...
The fire email, Monday 9:38am: "Late last night we had another strange incident that was hard to explain. Small fire on the body-in-white production line..." https://www.cnbc.com/2018/06/18/elon-musk-email-tesla-factor...
Someone conducts sabotage that is "extensive and damaging"... and you, someone who is known for being blunt and direct (questions from shareholders are "boring, yawn", etc.)...
and you're "dismayed"...?
Worked at a startup that used the "we had saboteurs in our midst, but they were discovered and now things will improve" story on the eve of needed new financing round. The story was somewhat accurate but had very little to do with the overall arc of growth or progress.
Tesla will need something to say about why they didn't make their targets, and this is going to be one of the things said.
Animats always has the most possible negative thing to say about Tesla, and this comment is typical for him.
That may reflect the problems being upstream of final assembly. Maybe they need more than a week to accumulate enough parts to run final assembly for a week.
I often hear how Hackernews is such a bastion of objectivity and critical thinking.
So why does "Elon says..." hold so much sway? We would laugh if it was "Zuckerberg says..."
Elon has "said" many things for many years which have not come to fruition.
Because he made an easily-falsifiable statement. Either you believe in a massive conspiracy involving Tesla's bankers, Tesla's auditors, Tesla's employees, and members of the public pretending to be Tesla's customers, or you believe that Tesla actually produced X cars last week.
If you're going the conspiracy route, you're also assuming that Musk is willing to risk jail time for... what exactly? To satisfy his ego? It's not like he's going to run out of money if Telsa goes bankrupt.
I mean ... I laughed. Didn't you laugh?
> I often hear how Hackernews is such a bastion of objectivity and critical thinking.
That gave me another good chuckle.
They eventually do get realized, and that in a way that many people feel will benefit society as a whole.
For example: Zuck/FB don't care a flying fuck about their userbase and only about advertisers (e.g. chronological feed, the entire handling of the "fake news"/propaganda episode, Cambridge Analytica, handing the American democracy over to Trump) and Zuck is doing nasty stuff like buying his neighbors' houses only to tear them down.
Elon Musk, on the other hand, isn't in the game for personal richness (or at least, he doesn't shove it in the face of everyone standing less than a shovel length away). He could have lived in the Bahamas and sipping Pina Colada for the rest of his life already after Paypal, but no, dude puts literally all his fortunes into SpaceX and Tesla, and makes them succeed (SpaceX at, well, providing humanity with re-usable, affordable rocketry after the corrupt, expensive, Russian-dependent clusterfuck of ULA and Tesla at proving electric-only vehicles can exist and are viable), and then still has not enough and pours more money into The Boring Company, oh and meanwhile also releasing everything regarding Hyperloop as Public Domain. And not to forget he could still exit from all the companies and spend the rest of his life sipping Pina Coladas, but not doing so.
Yes, there are valid points to flame Elon Musk on (especially the allegations of working standards violations, with massive overtime requirements etc.), but in the end Elon Musk wants to advance humanity, and Zuckerberg wants to advance his cash. Not difficult to say who deserves more support.
Citation?
https://www.cnbc.com/2018/06/18/elon-musk-email-employee-con...
It states there was a fire and that Musk references possible Sabotage. Then Musk says there is a real saboteur.
> Musk said this person had conducted "quite extensive and damaging sabotage" to the company's operations, including by changing code to an internal product and exporting data to outsiders.
Most people (myself included) assumed the sabotage he hinted at was done by the saboteur they caught who was intentionally trying to slow down Model 3 production to benefit "short sellers and oil and gas companies". Instead, Tripp just offloaded some data from a completely unrelated factory.
It feels like Musk was intentionally trying to conflate the two, since another fire is obviously bad news and making people believe it was the result of sabotage (with a real saboteur already caught) rather than just poorly run operations is in his best interest.
Musk states that Tesla is investigating whether this person was receiving any outside impetus, and warning employees to be extra vigilant for signs of sabotage during the next few weeks, but that wasn't what OP claimed.
Any deliberate attempt by Musk at conflating these different events is up to interpretation, but note that this is an internal e-mail and not a press release. It's easiest to just interpret this message at face value.
It certainly could be interpreted that way, but if one did, one would already have made some assumptions oneself. I just don't see how this matches up with Musk's brutally direct tone on other occasions. Misleading your own employees like this seems like it would be counterproductive.
Not to mention, it would be obvious to any insider that this wasn't the reason for the struggles with ramping production - they have been behind the (admittedly heavily accelerated, since the 2015 plan) schedule for months.
Edit: since we've warned you before and you've done it repeatedly since then, I've banned this account. If you don't want to be banned, you're welcome to email hn@ycombinator.com and give us reason to believe that you'll follow the rules in the future.
It's a rough estimate that isn't really accurate on a daily or weekly scale but tends to be accurate at the monthly level.
At any rate, Tesla is purportedly redirecting finished cars to non-US buyers or is holding back finished cars to avoid triggering the phase-out of EV-related tax rebates once they hit the 200k car milestone.
And where in your Bloomberg link does it say anything of the sort?
Citation on that? Thanks.
But to me it sounds like these guys are making battery powered cars and the sabetour worked in a battery plant..
Doesn’t that mean that if the battery line was sabotaged then they’d be unable to ship cars that need those batteries?
Or was it alleged that there were direct and tangible sabotages committed against the cars directly?
Edit: did I say something wrong? Forgive my ignorance on the topic and please explain to me why? A pipeline is a pipeline and if a component is missing you can’t call the product finished.
Edit2: By the downvotes and lack of reply I'm going to assume that people don't like that this question is raised. Why?
HN has a lot of great discussions and smart people, but it also has a handful of armchair engineers who are eager to tear down highly successful ones like Musk. Your comment offers a rational explanation for his concern and behavior, so naturally folks pushing ulterior narratives won't like it.
Don't let downvotes get under your skin. It's way harder, more interesting, and more dignified to think and respond critically and put your name on a comment like you did, than to click a little triangle anonymously every time someone challenges your assumptions. When an earnest question like yours turns grey, it says much more about the HN community than it says about you.
Because some people may be looking for validation on their preconceptions (in this case, "Musk is making excuses") instead of engaging in critical debate.
Also, time that Elon and other employees spend on this guy take time away from more important things.
It seems pretty obvious to me: this ex-employee stole (which is scummy) data from Tesla and leaked it to journalists (Business Insider). BI asked Tesla to comment on the data, they refused, then released an "email" that described the sabotage and data breach.
Is he a whistle-blower or a saboteur? That's the question.
Right, completely unrelated, because Tesla cars do not require batteries. Or software, which was also tampered with.
Tesla has filed a lawsuit, they are not coming up with excuses. At no point in the internal memo do they say this is the reason why they are missing their targets.
> Tesla will have a hard time showing actual losses from this.
To a judge, or to shareholders? Because this employee is done for. People got criminally charged and slapped with multi-decade jail time for way less.
Also, giving information to the media isn’t necessarily an honest act of whistleblowing. Depends on what you’re exposing and if it’s accurate in the first place.
But that's the rub, does he believe that or not, or was it as Tesla contends a lie to hurt an employer that passed him over for promotion? The court case is definitely one to watch, particularly if he can provide evidence of his claims.
Whistleblowing is not simply just telling random people, or media contacts, inner workings of companies that are protected and trade secrets. That's not how that works. There are specific ways to do it to protect yourself legally, or you can leak to Wikileaks or media outlets using TOR and other methods to keep yourself safe, but the latter method is illegal while the former method is legal, if not nearly as effective.
For a company that prides itself in it's manufacturing process (even if it isn't as-promised), it seem like this could even be perceived as IP theft.
Munro & Associates did a complete Tesla 3 teardown and disassembly in order to sell what they've learned to Tesla competitors for hundreds of thousands of dollars (https://www.youtube.com/watch?v=CpCrkO1x-Qo&t=4828s)
So did some German engineering company (https://cleantechnica.com/2018/02/19/tesla-model-3-stuns-ger...).
Apparently there are plenty of companies interested in how Tesla's cars are made.
> Apparently there are plenty of companies interested in how Tesla's cars are made.
Disassembing a rental car is ..uh.. rude, but other than that this is completely ordinary, and not even done in secret.
When I worked at BMW, we once went down to a big room where an entire VW (Golf?) was disassembled and on display, all its components laid out on long rows of tables.
I can't remember any access restrictions on that room -- it was just a place you went to look at how other engineers had solved particular problems, learn new tricks, or get inspired.
It's essentially the code reading of the mechanical engineering world.
Tesla claims this is a lie because no punctured cells were ever used in vehicles. This would be true even if - as the article claims - modules were punctured, the battery cells were damaged, and those modules were fixed and put into cars rather than being scrapped, just so long as any obviously punctured cells were replaced in the process. The article is rather vague on that crucial detail. In fact, Tesla's claim would be true even if damaged cells were shipping in actual Model 3s and they knew they were, so long as those cells weren't punctured.
In reality, a lithium ion cell with a small hole will slowly have the electrolyte evaporate, the internal resistance will increase, and the cell will stop being useful. If that's one cell out of 10,000 on a car, it's no big deal.
"What the hell do you think you're doing??" "I just wanted to play DOTA"
I'm skeptical that some individual blue-collar worker would risk his financial well-being and possibly freedom to make a few thousand dollars from possibly causing financial harm to Tesla and causing the stock to drop some. Seems like a stretch to me. If the suit is as alleged (passing false information to journalists) he's an attention seeking low-life.
What is with the obsession with "shorts"? I've never seen so much over-reaction to short selling in my life.
Why? Because it's an off the charts volatile basket case.
You can't talk about shorts without talking about hedging, both stocks and (convertible) bonds. This is a complicated financial play. Unfortunately, as happens, retail chumps will get roasted either way.
Yet, their stock is valued like one of those startups.
Can you expand on that? In theory, TSLA could become the next Toyota or GM. I guess that technically fits under 'somewhat'.
Market Cap Revenue Price/Sales
Toyota $201B $266B 0.76
VLKAY 91B 269B 0.34
Tesla 61B 12B 4.93
GM 60B 144B 0.41
Honda 56B 139B 0.40
Ford 47B 160B 0.30
Tesla is priced like it already is Toyota or GM.Which do I want more:
The sleek, sexy, self-driving electric sports car
An ugly, unappealing shaped car that people make fun of.
Hmmmmm...
Teslas aren't that bad.
It has a fancy cruise control.
(Markets don't work like this.)
2018 Audi R8 Base Price: $138,700
2018 Tesla Model 3LR Base Price: $49,000
The Audi and Lambo aren't in as high of demand as say, a Ferrari 488 (or whatever the latest mid-engined model is, I've lost track), but you can't actually buy a 488 if you don't already have a history of Ferrari ownership. So, while I doubt Audi and Lambo have the same restrictions on who they 'allow' to buy their car, good luck buying one off the lot or in any reasonable timeframe.
Are you seroius? Someone says the market cap of Tesla is "somewhat" bounded, and you ask how? Is it totally unbounded? Is what they are doing unprecedented beyond comparison?
Do you think the market cap of Tesla is infinity? It's already multiples of companies that produce a magnitude more cars and infinite more profit. Not good enough for you? What is it that you think Tesla does so well that justifies an unlimited market cap?
This is insane. Wish HackerNews existed during the DotCom bubble. It was bad enough being accused of sexism during the Theranos bubble.
Their solar business is a rock around their necks, that is hemorrhaging money, and laying off employees.
Their charger network's nice, but in a post oil world, every gas station will have chargers. And for some reason, Ford doesn't feel the need to own Exxon-Mobil - probably because energy is an interchangeable commodity... And they are not in the commodity business. They are in the business of building cars.
The reason for the Gigafactory is to compress supply chains, but more importantly because there isn't enough global demand/supply for batteries to support the volumes Tesla wants. Without building their own factory, the global supply would be a constraining factor for Tesla's plans. The Gigafactory is a long-term bet that they will need that much supply in the future. This is not a problem that other carmakers have where they would want to "vertically integrate" oil refineries and gas stations, because availability of gasoline is not a problem.
It is mitigation for a early-adopter business risk that their competitors don't have.
In any sane pricing of their stock, that risk would have lowered its value, and mitigating it would have brought it up to that of an auto manufacturer with similar volumes and margins and growth potential.
For some reason, though, people think that mitigating a risk that their competitors don't have warrants a premium.
Why hasn't GM bought an oil company, and a couple thousand gas stations? Apparently, this vertical integration would have made them 10 times more valuable.
Maybe it's because I can get the exact same gas from the Shell across the street.
Also, half of this vertical integration only 'works' (If you squint a lot) due to subsidies/loopholes in how people are billed/credited for home solar installations. When those installations become widespread, these subsidies will go away, and we'll be back to buying power wholesale, from utilities. There is no universe in which putting solar panels on your roof will be cheaper, or more efficient, then buying power from a solar utility.
But, to be fair, the enterprise value of GM (debt + stock) is over twice the enterprise value of Tesla.
GM currently makes more cars in a week, then TSLA does in a year. And it does so on positive margins.
It's certainly possible for TSLA to get to that point, but it is anything but a sure thing. Why anyone would be surprised that it is one of the most shorted stocks in the world is beyond me. If they fail to grow to GM's size, the shorts will be justified.
To put it in tech terms, it's valuing Mozilla > Apple, because Mozilla sold a million Firefox OS phones. Except that in this imaginary world, Mozilla doesn't even ship a web browser, and keeps having to ask its landlord for an extension on the rent payment due date. Obviously, Firefox OS will sweep the world by storm! Who doesn't like freedom? Surely, the users will switch en masse, and leave the old dinosaurs like Apple and Google broke.
There's so many factors in play with the stock. Personally though, I think a lot the short sentiment is conservative ideological blindness of the anti-Obama, anti-environmentalism variety. Tesla has always been highly shorted, even when its market cap was smaller.
In 2008, any 'we will change the world because everything social' startup.
in 2016, any 'we will change the world because everything crypto' startup.
All you need is a slide deck about how the <Whatever> market has been growing X% YoY and is worth $XYZ billion dollars, and how your <Website/App/Coin> will change everything. Hell, these days, you don't even need a slide deck, just a whitepaper.
As long as you don't actually have any revenue, you can keep people hopeful. Maybe you will grow into Amazon. Most of the time, you will grow into pets.com.
I have a question for you.
But first there is so much attention lately on Tesla shorters because they bet 10 billion on Tesla stock going down, and instead it went up, and they are about to all get wiped out.
And because inspite of the fact that Tesla is overcoming its production problems, and SpaceX is going great, the media has been flooded with stories lately about how Musk is a fraud, he is losing his mind, and Tesla is about to go bankrupt, and so many people reasonably believe the shorters are trying to save themselves from disaster by attacking Musk.
Now here is the question. Do you believe the Tesla shorters were smart when they made a prediction Tesla stock was going to go down?
Few thousand? With insider information, you can use the power of leverage to turn a few thousand into millions within seconds.
A leveraged account + options fun and you could go from thousandaire to a millionaire with a few key strokes.
> What is with the obsession with "shorts"? I've never seen so much over-reaction to short selling in my life.
Gambling addicts love the excitement.
It is possible though that he was wired a certain amount of money from a off shore account tied to a fund, practically untraceable, or paid in crypto.
Part of that payment though probably includes something like, if caught, you have to give a made up reason for doing it, or otherwise your family won't get the money... or worse things may happen to your family.
This kind of stuff is real and does happen. With the kind of money at play here, people will do anything. It's the old mafia style in the modern era.
Also shame on the author for Editorializing the title. The true article title is "Tesla sues ex-employee for hacking, theft, and leaking to the press"
1. 2 or more persons
2. intention
3. make an agreement
4. to violate the law
5. act in furtherance of that agreement
Conspiracy is a crime and so the Feds would be responsible for investigating and then charging that. This is only a civil suit. But yes, it sounds like a conspiracy.IANALBICLSUAWATNG
Anyways, the actual wording, I think, is "he also wrote computer code to periodically export Tesla’s data off its network and into the hands of third parties" which is vague.
It could mean that he exported the data off of the network and then gave it to third parties (news outlets). It could also just mean that he uploaded the data to an AWS server, or to his Google Drive account.
It certainly doesn't imply that he was hired by an outside agency specifically for this purpose, which is what the original comment was wondering about.
Whistleblowing is not about doing harm, it is about preventing it.
Say you dated someone at work and it didn't work out. Say you then went on a tirade around the office indicating exactly what their problems were (true or not), even to people who have no interest in dating that person. More accurately, you'd also pass off any and all benign details (because the installed software was indiscriminately passing off information). Would that be whistleblowing or would that be slander? Say that a good friend indicated that they were interested and you warned them away in private - completely different story.
If Tesla were using punctured cells (still up in the air, given that the defendant admitted malice), that would be valid reason to leak. If Tesla are missing targets, that is a reason to leak.
However, if those two hypothetical facts form part of a larger corpus of trade secrets and other confidential information your intent is not to be a whistleblower. You are not whistleblowing. You are harming.
Yet another analogy to drive the point home. The most your HN profile has is your location. Clearly you are using a pseudonym. Let's say that maybe you run a darknet site trading in various nefarious activities. If I were to dox you, that association would surely be part of the corpus. However, would that be whistleblowing or doxxing? Would my intent be anything else other than malicious? Furthermore, maybe my research, keylogger or what-have-you might miss that detail: meaning that I failed to disclose the information that would cause public concern over those activities. I'm just sharing your secrets. Good, bad, it doesn't matter.
Whistleblowing is altruistic.
This guy wanted to do harm and the line is, in a rare occurrence, clear as the blue sky. If Tesla is found to be falling short according to the information he disclosed, they should answer for it. In the US they may not: fruit of the forbidden tree. This means that Tesla may get off the hook because of the carte blanche disclosure - would any good come from this? However, he should absolutely pay for violating the trust of his employer merely because he got passed up for a promotion. It is a negative sum situation. Whistleblowing is zero-sum (at least in today's world).
Whistleblowers are heroes. There is, by even the most microscopic margin, not a hero here. Don't sour the sacrifices of people who took risks for the humanity, for a single person seeking selfish vengeance.
But srsly, one million? That shows that there was no demonstrable loss to Tesla, that this suit is purely punitive on a personal level.
Should it be zero if they don't know how much? Or a billion?
Edit: As someone else wondered...why does this guy even have the access to the systems necessary to have allegedly carry out these purported acts of sabotage? Is Tesla's security that lax? Why wasn't this detected immediately? What else does this say about their inability to control their own internal processes?
Edit 2: Deleted first paragraph. Turns out that Musk accused this employee of sabotage predating the employee's employment but Tesla isn't suing him for it.
No, it's not. Can you point to the line in the lawsuit where they make any claim of that sort? The accusations seem very specific to his own actions.