A former Tesla engineer has won a major legal victory in her years-long battle against the electric carmaker and its CEO, Elon Musk.
Cristina Balan, who was fired by Tesla in 2014 after raising concerns about vehicle safety, has successfully overturned a lower court decision that had blocked her defamation lawsuit from moving forward. The U.S. Court of Appeals ruled that the district court overstepped its authority in upholding a private arbitration decision that dismissed her claims.
Balan was one of Tesla’s top engineers and had her initials, “CB,” engraved on the batteries of the Model S. She claims she was terminated after alerting the company to a safety issue involving floor mats curling under the pedals—something she believed could endanger drivers by interfering with braking.
“I want to clear my name,” Balan told BBC News. “I wish Elon Musk had the decency to apologise.”
Following her dismissal, Tesla accused Balan of misusing company resources for a “secret project”—an allegation she denies, calling it false and damaging to her reputation. In 2019, she filed a defamation suit against Tesla, only to have it steered into arbitration due to an agreement she had signed while employed.
An arbitrator dismissed the case, citing the time elapsed since the alleged defamation. Tesla then asked a federal court to affirm the arbitration ruling. However, Balan appealed—and has now prevailed.
The appeals court decision opens the door for her to refile the lawsuit, potentially bringing the matter before a public jury and judge.
“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 said.
Beyond the courtroom, Balan has faced personal challenges as well. She was diagnosed with breast cancer during the legal battle but is now in remission. She says her fight is not only about restoring her reputation but also about setting an example for her young son.
“I’m fighting for justice—for myself, for my son, and for every worker who dares to speak up,” she said.
