Tesla Denies Further Evidence- Withdraws Restraining Order Request Against Alleged Short Seller

Brad Wilsonby:


It was revealed on Friday that Tesla, the giant automotive company has withdrawn its request of asking the court for a restraining order against an employee named Randeep Hothi. The employee, Hothi is apparently highly vocal individual on social media about his short position at the company. 

Tesla reported that Hothi had taken extreme measures and potentially dangerous steps in his fierce attempts to gather evidence and collect materials that support his vocal criticism.

Alameda County Superior Court granted temporary injunction to Tesla in April when the company had filed the complaint with supporting evidence and relevant documents supporting its assertion that Hothi was guilty in a hit-and-run case in February and had injured a guard. 

The complaint also mentioned that Hothi nearly caused an accident while driving recklessly in pursuit of a Tesla Model 3 during a test drive on April 16. 

The court requested Tesla to produce evidence in the form of audio and video recordings related to the two incidents filed against Hothi in the hearing, after granting a temporary injunction based on the supporting materials, written affidavits submitted by employees and the description of events provided by Tesla. 

According to the documents filed with the court for the withdrawal of the complaint, Tesla said that it considered the requirement for audio and video proofs unnecessary owing to the materials they have already provided as evidence. 

The company further conveyed in the documents that what the court is demanding, is an undue imposition on the employees and infringement of their privacy, since the recorded media contained “its employees” personal and private conversations along with the materials related to the case. 

Despite this, the company maintains its previous statement in the letter to the court and says it still believes that a restraining order against Hothi should be issued.  As per Tesla, the order would be an appropriate action which would help in maintaining the security of employees. 

Given a choice between protecting and disclosing their employees’ personal conversations to public scrutiny, the organization will instead opt to choose the protection of their safety via other means, said Tesla. 

When reached out about the withdrawal, a Tesla spokesperson said that the company is now assured that Hothi will be well aware of this state and that he is not allowed to enter the organization’s property. If however, he makes an attempt to breach the security of the company premises, he will face legal consequences of the same.

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