Eberhard's Lawsuit Against Tesla Goes Forward

A judge has refused to toss out the libel lawsuit Tesla Motors founder Martin Eberhard filed against current CEO Elon Musk, saying it wasn’t “in his purview” to rule on the merits of the case at this point. The San Mateo County (California) Superior Court judge issued a tentative written ruling Tuesday declining to dismiss […]

tesla_logo_leather2A judge has refused to toss out the libel lawsuit Tesla Motors founder Martin Eberhard filed against current CEO Elon Musk, saying it wasn't "in his purview" to rule on the merits of the case at this point.

The San Mateo County (California) Superior Court judge issued a tentative written ruling Tuesday declining to dismiss the lawsuit, which accuses Musk of litany of complaints including libel, slander and breach of contract. Eberhard claims Musk Musk took control of the company, orchestrated his ouster in 2007 and is attempting to “rewrite history” to take credit for the electric Roadster the two men worked together to create.

Eberhard's attorney, Yosef Peretz, could not be reached for comment. But he told Silicon Valley Business Journal, "We are quite pleased with the judge's ruling and will proceed with the litigation of the lawsuit."

Tesla was disappointed by the ruling but took some solace in the judge's ruling striking down Eberhard's request that he be "declared" one of only two founders of the company.

"We have long believed in the concept of a founding team, which includes Elon Musk as well as JB Straubel and other people who played indispensible and positive roles in Tesla's early history," spokeswoman Rachel Konrad said. "We definitely agree that Eberhard's claims on the founder issue have no legal relevance."

The company still believe's Eberhard's lawsuit "is an unfair personal attack and PR stunt," Konrad said, and "we look forward to proving the facts in court."

No trial date has been set.

Check out all our coverage of the case here.

Photo: Tesla Motors.