A former employee claims he was fired for raising concerns when the company sold defective cars.
Tesla has responded to allegations outlined in a whistleblower lawsuit that claims the company improperly sold defective cars.
Former regional manager Adam Williams claims he was fired for voicing concerns when the company allegedly sold cars without disclosing "high-dollar, pre-delivery damage repairs" and resold vehicles designated "lemons" under the labels "used" or "demo/loaner."
The lawsuit, filed under New Jersey's Conscientious Employee Protection Act (CEPA), claims Williams was demoted and eventually fired after alerting superiors to the practice.
"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," the company said in its response to the lawsuit, as quoted by The Verge. "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."
The lawsuit was filed in January in the New Jersey Superior Court.