Tesla Whistleblower Wins Appeal in Defamation Case Against Elon Musk
- tech360.tv
- 5 hours ago
- 2 min read
A former Tesla engineer has won a key legal victory in her long-running defamation battle against Elon Musk and the electric vehicle company.
Cristina Balan, who raised safety concerns in 2014 about a design flaw affecting Tesla’s braking system, had her defamation case revived after a panel of appeal judges in California overturned a previous court decision.
The U.S. Court of Appeals for the Ninth Circuit ruled that a California district court lacked jurisdiction to confirm an arbitration decision that had dismissed Balan’s claims.
The judges ordered the arbitration award to be cancelled and the district court action to be dismissed.
Balan, once a prominent engineer at Tesla with her initials engraved on Model S batteries, said she hopes to now bring a new lawsuit and face Musk and Tesla in open court.
She was dismissed from Tesla after raising concerns that carpets in some models were curling under pedals, posing a safety risk.
Although she won a wrongful dismissal case, Tesla later accused her of using company resources for a “secret project,” an allegation she denies.
In 2019, Balan filed a defamation suit against Tesla, seeking to clear her name.
The case was initially sent to arbitration due to a contract she signed while employed at Tesla.
The arbitrator ruled in favour of Tesla, citing California’s statute of limitations.
Tesla then sought to confirm the arbitration decision in district court, prompting Balan’s successful appeal.
Balan, who is in remission from stage-3B breast cancer, said her motivation is to prove her innocence for the sake of her son.
She expressed hope that the case will now return to court, allowing her to challenge Musk and Tesla before a jury.
Cristina Balan wins appeal in defamation case against Tesla
U.S. Court of Appeals rules district court lacked jurisdiction
Balan raised safety concerns in 2014 and was later dismissed
Source: BBC