Tesla Contacted By Senators Regarding Its Arbitration Clauses via insideevs.com
Seven US Democratic Senators have penned a letter to Tesla about the way it handles worker and customer complaints. Several of the politicians on the list have voiced their disagreements Tesla and Elon Musk in the past, but this is now moving to another level. Essentially, the group believes Tesla is using forced arbitration to hide information from the public.
It seems despite Tesla's success, it's almost constantly under fire by the media and many others. Perhaps some of it is actually because of the EV maker's success, which was unexpected by many, not to mention its vocal CEO and its uniqueness.has been questioned before about its non-disclosure agreements, and this is a somewhat similar situation. A company can compel people to agree to enter into an arbitration clause or build it right into a contract.
With an arbitration clause in place, Tesla could certainly limit the information that goes public. It could also sue former employees and make sure the media learns about all its accusations against them, and then turn to the agreement and force the person to settle the issue without ever going to court. This means the former employee can't defend themself publically. Tesla has actually proceeded like this in the past.
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