A former engineer turned whistleblower is preparing to relaunch her defamation lawsuit against Tesla and Elon Musk after a federal appeals court overturned a previous ruling that had dismissed her case.
Cristina Balan, who worked as a mechanical engineer at Tesla, raised safety concerns in 2014 about the design of the Model S, specifically that carpets could curl under the pedals and interfere with braking, the BBC reported.
After her warnings were reportedly ignored, Balan was fired and later accused by Tesla of using company resources for a “secret project” — allegations she says are false and defamatory. She initially won a wrongful termination suit, but launched a separate defamation lawsuit in 2019 to clear her name.
However, her defamation case was derailed when a court ruled it had to go through arbitration, where Tesla prevailed due to a statute of limitations.
In a major turn, the Ninth Circuit Court of Appeals ruled in early April 2025 that the lower court lacked jurisdiction to confirm the arbitration award, effectively canceling it and reopening the door for Balan’s legal action. This ruling could now allow her to revive her defamation suit and potentially bring the case before a judge and jury.
Speaking to BBC News, Balan said she is ready to “take on Elon Musk in open court,” hoping to restore her reputation after years of public accusations and legal hurdles.
Balan and her legal team are exploring whether to restart arbitration or move directly to a courtroom trial. Legal experts suggest the process could still take years, but the appeals ruling significantly strengthens her position.
Tesla, which has not commented publicly on the latest ruling, may still try to push for arbitration again.
Originally published on Latin Times
