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Tesla Whistleblower Wins Key Legal Victory in Battle Against Elon Musk

Tesla whistleblower Balan wins major legal victory, reviving her defamation case against Tesla and Elon Musk over safety concerns.

A Tesla whistleblower who raised safety concerns over a decade ago has won a crucial round in a lengthy legal battle against Elon Musk’s company, reviving hopes for a public trial.

Cristina Balan, a former Tesla engineer, was dismissed from the company in 2014 after she flagged a potential design flaw involving curled carpets beneath pedals that could pose a serious safety risk. Once a rising star at Tesla — her initials were engraved on Model S batteries — Balan has fought a long and complex court fight to clear her name.

This week, a panel of judges at the US Court of Appeals for the Ninth Circuit ruled in Balan’s favor, overturning a lower court decision that had previously confirmed an arbitration award dismissing her defamation claims against Tesla. The ruling effectively resets the case, giving Balan another shot at holding the electric carmaker accountable in open court.

“We are hoping we will start a new lawsuit and we will have the chance to take on Elon Musk in front of a jury and judge,” Balan told BBC News, which first reported the latest development. “I want to clear my name.”

Balan alleges that Tesla not only ignored her safety warnings but retaliated against her, leading to her dismissal. She won a wrongful termination claim, but her legal journey was far from over. In 2019, she filed a defamation lawsuit after Tesla publicly accused her of using company resources for a “secret project” — an allegation she denies and likens to a criminal accusation of embezzlement.

Initially, her case was forced into arbitration based on a contract she signed while employed at Tesla. The arbitrator sided with the company, citing the statute of limitations. Tesla then sought to have that decision confirmed in California district court.

But the appellate court found the district court lacked jurisdiction to confirm the arbitration ruling, ordering it to dismiss the case entirely. This effectively nullifies the arbitration result and could allow Balan to relaunch her legal claims.

Tesla has not commented on the ruling or responded to requests for comment.

Balan, who has also been battling stage-3B breast cancer and is now in remission, said her fight is about justice — and about leaving a legacy for her son.

“I wish Elon Musk had the decency to apologise,” she said last year. “I want the truth to come out.”

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