A former Tesla employee claims the company knowingly sold defective cars, often referred to as “lemons,” and that he was demoted and eventually fired after reporting the practice to his superiors. He made these allegations in a lawsuit filed in late January in New Jersey Superior Court under the Conscientious Employee Protection Act (CEPA).The former employee, Adam Williams, worked for Tesla as a regional manager in New Jersey dating back to late 2011. While there, he says he watched the company fail “to disclose to consumers high-dollar, pre-delivery damage repairs” before delivering its vehicles, according to the complaint. Instead, he says the company sold these cars as “used,” or labeled as “demo/loaner” vehicles.
This is not the first time Tesla has dealt with a lawsuit that involved accusations of lemon law issues. The company settled a lawsuit with a Model X owner in 2016 who complained about problems with the doors and software of his vehicle.
Ouch. Sounds like something Musk would do though.