A former regional manager for Tesla is suing the company for demoting and firing him after he raised concerns that its practice of selling previously damaged cars was illegal. The plaintiff, Adam Williams, is bringing the suit under the Conscientious Employee Protection Act.
The lawsuit, surfaced by the Verge, says, “During the course of Mr. Williams’ employment with Defendants, he became aware of Defendants’ practice of failing to disclose to consumers high-dollar, pre-delivery damage repairs prior to any transaction with consumers.” It goes on to accuse Tesla of receiving vehicles designated as “lemons” and knowingly reselling them as “used” or “demo/loaner” cars. Tesla is denying the claim.
Last year, Tesla faced major production issues that held back production goals for its newest car, the Model 3. In January, CNBC reported that Tesla factory workers were, in some instances, putting batteries together by hand, and that quality may be have been affected. In its latest earnings statement, the company promised it is “taking many actions to systematically address bottlenecks and add capacity” in necessary areas.