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Business

Elon Musk is sued by a Tesla whistleblower who demands an apology.

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Last updated: April 17, 2025 5:10 am
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Cristina Balan, a Tesla whistleblower who has been fighting Elon Musk and his automaker in court for years, has won a significant victory in her ongoing legal battle. According to the BBC, she has prevailed in the most recent round of the conflict with him. After voicing safety concerns about a design issue that she thought would jeopardize the braking system of Tesla automobiles, Balan was fired in 2014.

Cristina Balan claimed that Elon Musk and Tesla had harmed her reputation and filed a defamation lawsuit against them. However, when a judge confirmed an arbitration decision rejecting her claims, it seemed as though her lawsuit had reached a dead end. She can now pursue her legal battle against Musk and his business, though, as a California appeals court panel has recently reversed that ruling.

The court stated, “We remand this action to the district court with instructions to dismiss for lack of jurisdiction and vacate the order confirming the arbitration award.”

The appeal was won, and she wrote, “I won. I prevailed in my appeal against Tesla and Elon Musk. Musk and Tesla lost the first appeal. The first female engineer and former Tesla immigrant who battled Musk as a Pro Se

Former Tesla engineer Balan’s initials are imprinted on the batteries that power Model S cars.

She told the BBC that she is battling not just for herself but also to clear her name for the sake of her son. “We are hoping we will start a new lawsuit and we will have the chance to take on Elon Musk in front of a jury and judge,” she said.

Balan, who is presently battling stage 3B breast cancer, acknowledged that she was afraid she might not live long enough to witness the courtroom ruling in her case.

According to the Tesla whistleblower, some of the carpeting behind the pedals in some Tesla models were curling up. Her worries were disregarded, though, and she ultimately lost her job. Later, Balan successfully sued for wrongful termination.

Balan filed a slander lawsuit against Tesla in 2019 after the firm claimed she was using Tesla resources for a “secret project.” She has repeatedly refuted the allegation and stated that she wants to clear her identity.

Because she had signed a contract while working at Tesla that required issues to be settled through arbitration rather than a regular court, the court subsequently decided that her case must be handled through arbitration, a private, less formal judicial process.

Tesla filed a motion to have the decision upheld by a district court, despite the arbitration rejecting her case due to California’s statute of limitations. The US Court of Appeals for the Ninth Circuit agreed with Balan’s appeal, holding that the trial court lacked jurisdiction. The arbitration confirmation was declared void by the appellate court, which also dismissed the case.

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