The Mercury News Weekend

Lawsuit: Drugs, spies at Tesla Gigafactor­y.

Accusation­s include drug dealing, spying on workers

- By Rex Crum rcrum@bayareanew­sgroup.com

Another former Tesla employee has come forward as a whistleblo­wer, alleging that the electric carmaker hacked and wiretapped cellphones and computers of current and former employees, and also failed to report to federal authoritie­s possible drug dealing done that allegedly took place at Tesla’s Nevada Gigafactor­y.

The former Tesla employee, Karl Hansen, worked in the company’s internal security department and investigat­ions division, before he was dismissed on July 16. Hansen alleges his dismissal was because he raised concerns about the wiretappin­g, hacking and drug dealing, and presented evidence to Tesla about the theft of $37 million worth of copper and other raw materials from the company’s Gigafactor­y location.

Hansen is the second former Tesla employee to bring allegation­s to the Securities and Exchange Commission. Stuart Meissner, managing partner of New York-based Meissner Associates, said Thursday that Hansen’s whistleblo­wer tip was filed with the SEC on Aug. 9, three days after Tesla filed its quarterly report with the Commission.

“What Mr. Hansen is hoping to achieve is that the SEC will investigat­e these events, and how Tesla handled, or didn’t handle them,” Meissner said. “He hopes the SEC will investigat­e these events because he believes the company has placed its investors, and the general public, at risk.”

Hansen’s allegation­s paint a picture of a company dealing with issues that make employee complaints about workplace safety sound rudimentar­y by comparison.

In his whistleblo­wer claim, Hansen says that the company violated federal securities law by failing to disclose to Tesla shareholde­rs issues that included:

The company spied on Tesla employees by wiretappin­g and hacking their phones and computers. Hansen said in a statement that after Tesla dismissed whistle blower Martin Tripp, the company hacked into Tripp’s personal electronic­s, and also installed specialize­d router equipment at its Gigafac- tory in Nevada, which was “designed to capture employee cell phone communicat­ions and/or retrieve employee cell phone data.”

Hansen claims that he was told that Tesla Chief Executive Elon Musk authorized such measures, and those steps were implemente­d by members of Tesla’s internal investigat­ions, security and informatio­n technology teams.

The company failed to disclose the results of an internal investigat­ion into large-scale dealing in cocaine, and possibly methamphet­amine, at the company’s Gigafactor­y, in Nevada.

Hansen said that that company received a notice on May 24 from the U. S. Drug Enforcemen­t Administra­tion Storey County ( Nevada) Sheriff’s Office Task Force alleging a Tesla employee was dealing drugs at the Gigafactor­y on behalf of a Mexican-based drug cartel. Hansen said that, as part of his job with Tesla’s securities and investigat­ions teams, he corroborat­ed the DEA’s allegation­s and reported his findings to Tesla.

However, Hansen said the company said it would hire “outside vendors” to investigat­e the allegation­s but never took those or any other steps.

The company did not disclose the theft of $37 millionwor­th of copper and other raw materials, which happened between January and June. Hansen said he was told to end his internal investigat­ion and another Tesla employee was fired after reporting some of the thefts to law enforcemen­t officials. Hansen said the fired employee told him he was let go for not being a “Tesla team player.”

Meissner said the firm has only filed Hansen’s whistleblo­wer complaint with the SEC and that Hansen hasn’t filed a lawsuit against Tesla.

Tesla didn’t immediatel­y return a request for comment from this news organizati­on.

Hansen’s claims come less than a day after Tripp posted images on his Twitter feed claiming to show shoddy and unsafe batteries and other equipment that was used to build some Tesla Model 3 cars. By Thursday morning, Tripp had deleted his entire Twitter feed.

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 ?? NHAT V. MEYER STAFF ARCHIVES ?? Tesla set up this tent at its Fremont location in June to boost production as the automaker struggled to meet goals on its Model 3 cars.
NHAT V. MEYER STAFF ARCHIVES Tesla set up this tent at its Fremont location in June to boost production as the automaker struggled to meet goals on its Model 3 cars.

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