Tesla Knowingly Sold Defective Vehicles, Claims Former Employee

A former Tesla employee has filed a lawsuit against his former employer, alleging that the electric automaker has knowingly sold defective vehicles.

Williams asserts that during his time at Tesla, he witnessed the company failing “to disclose to consumers high-dollar, pre-delivery damage repairs” and that defective models were often sold as used or demo/loaner vehicles.

Adam Williams worked for Tesla as a regional manager in New Jersey from late 2011 to September 2017 and in the lawsuit, filed in New Jersey Superior Court, asserts that he was demoted and ultimately fired after reporting the practice to his superiors.

The plaintiff goes on to claim that he reported the practices to Tesla East Coast Regional Manager Lenny Peake and company vice president Jerome Guillen.

As Williams states Tesla was engaging in illegal practices, his lawyer notes that he should be covered under the whistleblower act which protects employees who report, object to, or refuse to participate in what they think is lawbreaking behavior.

In a statement issued to The Verge, a Tesla representative vehemently denied the claims.

“There’s no merit to this lawsuit. Mr. Williams’ description of how Tesla sells used or loaner vehicles is totally false and not how we do things at Tesla.

“It’s also at odds with the fact that we rank highest in customer satisfaction of any car brand, with more owners saying they’d buy a Tesla again than any other manufacturer. Mr. Williams was terminated at Tesla for performance reasons, not for any other reason.”

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  • Jay

    Here we go.. all companies will get these


    This quote stood out to me. “It’s also at odds with the fact that we rank highest in customer satisfaction of any car brand, with more owners saying they’d buy a Tesla again than any other manufacturer.”

    Like, what does that have to do with reliability or possibly defective vehicles? Just because you have devoted fan base doesn’t automatically mean your product is free from defects.

    I’ll wait and see where this thing goes. Perhaps there is something to it or perhaps there isn’t.

  • UGH! Another Tesla Story

    • Honda NSX-R


    • LWOAP

      Someone’s trying to compete with you.

  • lagunas3ca

    Model X is the safest SUV ever tested. Also awarded a perfect 5-star safety rating (NHTSA), the first SUV ever to get the top score. Next article…

    • Donal Maher

      The safety score is irrelevant. Reliability scores, warranty costs, faults found within 12 months/24months etc. That is what will really be the test for this company.

  • TheBelltower

    Sponsored by Bob Lutz and Exxon.

    • LWOAP

      According to what evidence?

      • TheBelltower

        Glad you asked. There are several groups that are known to push anti-Tesla content out daily. Some of it is true, but amplified. Some of it is outright false.

        The first – Oil companies and gas stations. They have billions annually at stake, and even a fractional dip would be disastrous for them. And their public silence about an emerging industry that threatens them is conspicuous.

        The second – Dealer Networks. Clearly they are unnecessary and only make it impossible for automakers to control the customer experience. Tesla has fought them and won. Which is going to open the floodgates for others to circumvent them completely.

        Third – Automotive suppliers. You don’t need engine oil, coolant, exhaust systems, and many other comments in a Tesla like you do in conventional cars. Do you think that they are just sitting back observing?

        Fourth – Conventional automakers. These guys are beholden to the oil industry and everyone else listed above. When Bob Lutz said that GM “could” build an EV to compete with Tesla, he was correct. But he won’t because he’s tethered to those who aren’t invested in these vehicles becoming commonplace.

  • Maria Andrews

  • Six_Tymes

    Former Tesla Employee Claims They Knowingly Sold Defective Vehicles


  • Jason Panamera

    Secret of Polichinelle

  • Vassilis

    This wouldn’t surprise me at all. They did launch Auto Pilot which isn’t an auto pilot at all and they did say a while back that the first Model 3s would essentially be beta cars. Don’t know if they actually are but just thinking that’s fine shows a few things about Tesla’s culture.

    • Plutonium

      Lalalala…. I can’t hear you… (Teslavites) block all negativity and criticism … it’s a conspiracy…. lalala…. need a safe bubble … to produce positive energy …