7 ms·

If Tesla was smart and gave these aquihired employees adequate golden handcuffs and noncompete clauses then I agree. But if they didn't and key employees just l

If Tesla was smart and gave these aquihired employees adequate golden handcuffs and noncompete clauses then I agree. But if they didn't and key employees just leave and use their expertise to start another company that helps out the competitors again then Tesla will have played themselves.

wand3r 9y ago
It could go poorly. Those are good points. It was a decent but if they retain talent and deprive competitors. Takes a long time to start a company and Tesla is likely attractive place for engineers so they will prob retain employees and IP to make it palatable if not profitable
gumby 9y ago
> If Tesla was smart and gave these aquihired employees adequate golden handcuffs and noncompete clauses... BTW noncompetes are illegal in California where Tesla is based.
- dangrossman 9y ago
  California law is not relevant to employees living and working in Germany.
  - jansan 9y ago
    AFAIK in Germany con-competition agreements are possible with the maximum term of two years.
- sacheendra 9y ago
  Grohmann Engineering is a German company. Can someone chime in on the legality of non-competes in Germany?
  - jakewins 9y ago
    Totally legal, as long as the employee is paid at least 50% of their salary after they leave for the full duration of the non-compete period. http://www.lexology.com/library/detail.aspx?g=2bae173f-7fe4-47ba-8dfb-30a1ba642fb2 http://www.lexology.com/library/detail.aspx?g=2bae173f-7fe4-...
    - mjevans 9y ago
      That actually sounds fair given the circumstances. Paid time to either stay out of the market and relax, or to transition to a fresh field unaffected by the non-compete.
snovv_crash 9y ago
This isn't software that a team of 6 can replace in 6 months. This is stuff like assembly lines, metallurgy treatments, the characteristics and quirks of specific machines, and requirements of suppliers. These can't just be replaced by a rogue team leaving.
- tedivm 9y ago
  It can easily be argued that those people are the real value behind this acquisition. Even if they could be replaced easily (not likely) it would still be a huge blow.
  - snovv_crash 9y ago
    Agreed, the loss of institutional knowledge will cripple the team. However, what I am arguing is that they leavers won't be able to take the business elsewhere just with what is in their heads.
- williamscales 9y ago
  On the contrary. The rogue team leaving knows how to build and maintain the assembly lines, invented the metallurgy treatments, designed and built the machines, and created the supplier network themselves. Without the team, the automated manufacturing business is probably not worth nearly as much. The team can go elsewhere and repeat the feat.
  - snovv_crash 9y ago
    No, no they didn't. They inherited the machine, or bought it from someone else. This isn't software engineering, where people bootstrap their compilers. They signed exclusive contracts with suppliers. They designed parts which took many iterations of surface finishes and annealing schedules and tolerances to get right. Each iteration requires months of turnaround time and $€£ in manufacturing costs. Sure the team can go elsewhere. But it will take them almost as long to set it up the second time around, and almost as much money.

wand3r 9y ago

It could go poorly. Those are good points. It was a decent but if they retain talent and deprive competitors. Takes a long time to start a company and Tesla is likely attractive place for engineers so they will prob retain employees and IP to make it palatable if not profitable

gumby 9y ago

> If Tesla was smart and gave these aquihired employees adequate golden handcuffs and noncompete clauses... BTW noncompetes are illegal in California where Tesla is based.

dangrossman 9y ago
California law is not relevant to employees living and working in Germany.
- jansan 9y ago
  AFAIK in Germany con-competition agreements are possible with the maximum term of two years.
sacheendra 9y ago
Grohmann Engineering is a German company. Can someone chime in on the legality of non-competes in Germany?
- jakewins 9y ago
  Totally legal, as long as the employee is paid at least 50% of their salary after they leave for the full duration of the non-compete period. http://www.lexology.com/library/detail.aspx?g=2bae173f-7fe4-47ba-8dfb-30a1ba642fb2 http://www.lexology.com/library/detail.aspx?g=2bae173f-7fe4-...
  - mjevans 9y ago
    That actually sounds fair given the circumstances. Paid time to either stay out of the market and relax, or to transition to a fresh field unaffected by the non-compete.

snovv_crash 9y ago

This isn't software that a team of 6 can replace in 6 months. This is stuff like assembly lines, metallurgy treatments, the characteristics and quirks of specific machines, and requirements of suppliers. These can't just be replaced by a rogue team leaving.

tedivm 9y ago
It can easily be argued that those people are the real value behind this acquisition. Even if they could be replaced easily (not likely) it would still be a huge blow.
- snovv_crash 9y ago
  Agreed, the loss of institutional knowledge will cripple the team. However, what I am arguing is that they leavers won't be able to take the business elsewhere just with what is in their heads.
williamscales 9y ago
On the contrary. The rogue team leaving knows how to build and maintain the assembly lines, invented the metallurgy treatments, designed and built the machines, and created the supplier network themselves. Without the team, the automated manufacturing business is probably not worth nearly as much. The team can go elsewhere and repeat the feat.
- snovv_crash 9y ago
  No, no they didn't. They inherited the machine, or bought it from someone else. This isn't software engineering, where people bootstrap their compilers. They signed exclusive contracts with suppliers. They designed parts which took many iterations of surface finishes and annealing schedules and tolerances to get right. Each iteration requires months of turnaround time and $€£ in manufacturing costs. Sure the team can go elsewhere. But it will take them almost as long to set it up the second time around, and almost as much money.