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New Mexico developer suing Tesla over lost electric car factory

Discussion in 'Tesla Motors' started by Kevin Sharpe, Aug 1, 2012.

  1. Kevin Sharpe

    Kevin Sharpe Active Member

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    "Remember back in 2008 when Tesla decided to move the production of its Model S electric car from New Mexico to California? Well, so does the developer that was going to build the facility — they’re suing Tesla for breach of contract and fraud."

    GIGAOM
     
  2. Uncle Ron

    Uncle Ron Member

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    #2 Uncle Ron, Aug 1, 2012
    Last edited: Aug 11, 2012
    EDIT,,
     
  3. doug

    doug Administrator / Head Moderator

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    I read that in Wired today. (Tesla Sued by New Mexico Real Estate Developer | Autopia | Wired.com)


    If Rio Real Estate Investment Opportunities had a case, I don't see why they waited until now to sue. Perhaps they figure now Tesla has deeper pockets. They claim they signed a deal back in 2007. That was clearly way premature for Tesla to move forward on the then Whitestar. Plans for a plant in San Jose were scraped when the details of the ATVM loan program required using a brownfield sight. Such requirements would have similarly scuttled plans for the location this New Mexico developer had scouted.
     
  4. Arnold Panz

    Arnold Panz Model Sig 304, VIN 542

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    It's weird to bring the case so long after the alleged breach, but as long as the breach of contract statute of limitations is five years, they should be fine. I assume that the timing is intended to pressure Tesla to settle so as to avoid negative publicity as their cars start rolling out.

    Tesla smartly removed the case to federal court. Just based on reading the Complaint and Answer, I think Tesla has a good defense to this case. The "contract" they signed is really just an agreement to enter into a contract/lease. These are pretty hard to enforce. To the extent that the developer spent hard money in anticipation of Tesla signing a lease, they may be entitled to recovery of that under the concept of promissory estoppel, but otherwise I don't see any big exposure for Tesla. They can settle cheap, but I assume the developer is counting on home court advantage to pressure Tesla to pay more than the case is worth.
     
  5. Lloyd

    Lloyd Active Member

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    Read the whole complaint and response. Does not appear to have any teeth!! :biggrin:
     
  6. VolkerP

    VolkerP EU Model S P-37

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    So far the statements from our forum lawyer and our forum dentist :biggrin: Who else want's to chime in?

    linux admin: that case seems hardly rooted.

    car nut: I don't see that gather any traction.

    ...?
     
  7. Tommy

    Tommy Member

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    I mentioned the case to the gal that cleans and presses my shirts; she says Tesla should counter sue and take the developer to the cleaners! Go figure.:biggrin:
     
  8. Doug_G

    Doug_G Lead Moderator

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    ...and Neil DeGrasse Tyson thinks the odds are astronomical.
     
  9. Arnold Panz

    Arnold Panz Model Sig 304, VIN 542

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    ... and Satan thinks there's no chance in hell.

    The real question is, does the comedian think any of these jokes are funny?
     
  10. AndyM

    AndyM Member

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    Michael Phelps says "It's not the greatest..."
     
  11. spatterso911

    spatterso911 MSP#7577 **--** MX#1891

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    Anyone with brains will have the guts to see that this case has got no heart!
     
  12. Doug_G

    Doug_G Lead Moderator

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    I know I fanned the flames... but as moderator I should probably be sending most of this thread to Off Topic!
     
  13. VolkerP

    VolkerP EU Model S P-37

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    One more, please, then I will shut up! :redface:

    Spatters, that was Kevin's part. :smile:
     
  14. spatterso911

    spatterso911 MSP#7577 **--** MX#1891

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    Kevin and I have much in common.
     

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