Tesla Motors Inc (TSLA) Goes to Court, Not Over Dealerships or Patents

Tesla Motors Inc (NASDAQ:TSLA) has become the darling of the automotive industry this year, virtually by surprise when one considers that Tesla stock was selling for closer to $25 a share a year ago and not $125 a share.  This has been a banner year for Tesla, the 10-year-old electric car maker.  This year could be defined as almost perfect – except for that small proactive recall to which virtually no one paid more than a few hours’ attention. (We happened to catch it, though.)

Amidst all of the positive vibes surrounding Tesla Motors Inc (NASDAQ:TSLA), it has had its small challenges. Not just the recall, but it is also pushing back against a campaign by dealerships to gets laws passed in states that would ban direct-to-consumer auto sales.

Oh sure, it’s OK if you want to buy those fashionable jeans on line from Amazon.com, Inc. (NASDAQ:AMZN) and get free shipping, but it’s blasphemous to buy a car online and have it delivered to you. And yet, while the dealerships look desperate and threatened, Tesla continues to build momentum toward reaching the self-proclaimed goal of 20,000 vehicles sold in 2013.

And while Tesla Motors Inc (NASDAQ:TSLA) may have its legal hands full with the anti-Tesla laws, as well as certain patent discussions or lawsuit threats, the company does still, on occasion, have to deal with issues that dont’ directly involve its business model or its patent portfolio in its innovative electric-car concept.

Once in a while, a car company has a problem with a supplier, and Tesla is dealing with that now, according to a report from Zacks.com.

In the report, it was revealed that Tesla, which has been very proactive in its patent litigation issues, has filed a lawsuit against car-manufacturing equipment maker Atlas Technologies Inc., trying to compel Atlas to participate in a arbitration over a “contract dispute.” The contract calls for arbitration to settle the matter, and apparently Atlas has been ducking it. We don’t know more about the dispute or what caused Tesla to file suit over seeking arbitration.

What are your thoughts? Why do you think Tesla Motors Inc (NASDAQ:TSLA) was led to file suit?

Based on the general term about a “contract dispute,” do you think it’s smart for Tesla to file this suit, and do you think it will work out favorably for Tesla in the end? How do you think investors like fund manager D E Shaw (see his full equity portfolio) take to this generally aggressive legal approach by the company? Give us your feedback on this in the comments section below.

DISCLOSURE: None