Chinese national security newspaper, The Shanghai Securities Journal, reports Tuesday that American electric automaker, Tesla (NASDAQ:) has filed a lawsuit against Chinese chip designer, Bingling Intelligent Technology, over tech secret infringement and unfair competition disputes.
Tesla alleges that Bingling violated its intellectual property rights, particularly in integrated circuit chip design, and may have unlawfully obtained Tesla’s technological know-how.
The electric automaker is apprehensive that Bingling’s actions could result in technology leakage and the illicit acquisition of trade secrets, potentially harming Tesla’s market standing and business interests.
Bingling specializes in integrated circuit chip design, automotive component manufacturing, and automotive part research. Their primary product is energy-efficient management sensors, crucial for optimizing battery systems, motor control, and power modules in new energy vehicles, enhancing energy efficiency and safety control.
It’s important to highlight that Xiaomi (OTC:) Smart Factory invested in Bingling in March, now holding around 11.86% of the company’s shares. This adds complexity to the situation, as Xiaomi, a prominent tech company, becomes the second-largest shareholder. Xiaomi’s ownership position potentially grants them significant influence over Bingling’s progress and the ultimate resolution of the case.
According to the report, the lawsuit against Bingling will be heard in the Shanghai intellectual property court on October 10.
Shares of TSLA are up 3% in mid-day trading on Tuesday.