Tesla supplier demands $250k/day ransom for parts

[CyberGus]

This is Bricks-and-Minifigs all over again

Sponsored

 

[REM]

Nagesh Palakurthi

 

[mitch9]

This is strategic corporate espionage. absolutely no doubt in my mind.

If I was Elon, I would just pay a group of 100 heavily armed mercenaries to storm the joint and dare anyone to flinch

The courts are going to drag their feet for as long as possible because they are already bought and paid for ahead of time for something like this.

I agree, but the general law of using force (and if someone is injured or killed in the conflict, which seems highly likely), is, that you can't inflict injury to recover property, human life is ALWAYS valued higher than property.

I think Tesla and Elon need to get a judge on their side, and get a judgement against this company, and show up with a large force to recover it, along with the local law enforcement to enforce the court order

 

[REM]

human life is ALWAYS valued higher than property

Hard disagree. There is definitely nuance here, since it is morally justified to use lethal force to defend your personal property (like your home, vehicle, critical assets that take care of your family etc).

Which is obviously not the case here, but otherwise agree. It would be nice to use the courts if they functioned the way they are supposed to. I have my doubts considering our court system is an absolute disaster at the moment.

I was suggesting the show of brute force as a way to send a shot across the bow of other companies that want to try and do this to Tesla or SpaceX. Speaking of which, if anyone tried to do this to SpaceX, the U.S. government would knock on their door REAL quick, as SpaceX is now considered a national critical asset. Tesla is probably not far behind getting assigned that designation as well.

 

[Fugue]

certified minority-owned enterprise

I wonder if Elon's companies qualify for this designation since he's African American.

 

[TECHNOMAGE]

I guess I won't be seeing "my" $60K twuck anytime soon.. Oh well!

 

[TECHNOMAGE]

Credit to @HTXcyber

Putting this here cause it affects all CT production
https://news.bloomberglaw.com/busin...-texas-supplier-is-holding-parts-for-ransom-1

Tesla Inc. is trying to retrieve equipment used to make parts for its Cybertruck that it says a Texas supplier is refusing to relinquish unless the electric vehicle maker pays it $250,000 a day.

The Elon Musk company is seeking an emergency federal court order compelling Angstrom Automotive Group LLC to grant it access to its central Texas facility so that it can reclaim the multi-ton equipment and end what’s turned out to be a contentious partnership.

“Tesla requests the Court to grant it one thing: retrieval of Tesla’s Tooling. It does not seek to litigate any other disputes between the parties,” the automaker said in the Thursday complaint.

A ruling denying Tesla access to the facility would slow the production and delivery of the Cybertruck, the lawsuit said, because Angstrom is in possession of 700 Tesla products that it was scheduled to ship to Tesla on July 17 but didn’t. Most if not all of Cybertrucks currently in production are already assigned to customers, Tesla said.

“Without the Tooling, Tesla will be unable to manufacture several thousand Cybertrucks that are currently in or planned for production, most, if not all, of which are already committed to customers,” Tesla said in the lawsuit.

Angstrom didn’t respond to a request for comment on the lawsuit Friday.

The complaint filed in the US District Court for the Western District of Texas tells of a cratering partnership that began when Angstrom acquired a supplier that had been working with Tesla in early 2025.

Facility Shuttered

On July 13, Angstrom informed Tesla that it intended to shut down its Troy, Texas facility, but refused to cooperate with Tesla on a plan to retrieve the tooling.

The next week, Tesla said Angstrom demanded compensation for modifications to the tooling and offered to continue operating the facility if Tesla came through with $250,000 a week on top of any amounts paid for purchase orders. The next day, July 21, Tesla representatives arrived to the facility with law enforcement to retrieve the equipment but were denied access, the lawsuit said.

Replacing the equipment isn’t an option, Tesla said, because it’s “extremely complex” and would take five to six months to build.

Tesla is represented by Norton Rose Fulbright US LLP.

If they lose a lawsuit and refuse to pay... Here's an example of what can happen. This was in Connecticut: A citizen sued Amtrack for damages and won. Judge awarded them money, but collecting is not the judge's problem. The guy's lawyer handed collections to the "sheriff". Shortly thereafter the sheriff seized a railroad locomotive after it pulled into the station. I never heard the rest of it. Suspect the railroad's attorneys made a "hurry up call" to their favorite judge. Just thinkin!

 

[HLitt]

Grok says tooling could take 5-6 months to replace if they can't recover it from manufacturer. We are looking at huge delays if this isn't resolved quickly.... Guessing it won't be.

I’d guess it will get resolve ASAP. The question is why is Armstrong doing this to Tesla??

 

[HaulingAss]

Grok says tooling could take 5-6 months to replace if they can't recover it from manufacturer. We are looking at huge delays if this isn't resolved quickly.... Guessing it won't be.

The law will likely look very favorably on a manufacturer in Tesla's position (trying to recover tooling that they own). This means it will likely be resolved by recovering their tooling in short order. It will likely result in a small production delay. Chances are, Angstrom acquired the Tesla supplier just so they could make it difficult on Tesla. Follow the money.

Tesla has never shone a light on this kind of thing, it has almost always happened behind the scenes, but we've seen Tesla drop numerous suppliers that were trying to make it hard on Tesla while rewarding suppliers who perform. Tesla knows how to deal with this kind of adversity, that's why they are still around. This is a strategy that anti-electrification interests have played from day one. For example, it's why Tesla makes all their own seats. No other high volume manufacturer does that, they were forced to. Tesla does what it takes to keep making compelling and affordable electric vehicles. Tesla will come through this fine, it's what Tesla has been up against all along.

 

[Alpine]

.

 

[HaulingAss]

I guess I won't be seeing "my" $60K twuck anytime soon.. Oh well!

When were you expecting delivery? Supply chains are managed months and even years out. Even if this ended up creating a shortage that stopped Cybertruck production for two months, that stoppage would probably be months out. Chances are most people who are already waiting for imminent deliveries in the next several weeks or even months will not be delayed.

 

[Alpine]

When were you expecting delivery? Supply chains are managed months and even years out. Even if this ended up creating a shortage that stopped Cybertruck production for two months, that stoppage would probably be months out. Chances are most people who are already waiting for imminent deliveries in the next several weeks or even months will not be delayed.

"Tesla runs just-in-time manufacturing, so a supplier holding a single set of dies can idle a line in days rather than months. The company is not asking a court to decide who owes whom. It is asking a court to get the presses onto trucks before the parts bins at Gigafactory Texas run dry"

Sponsored