Read the attachments to the suit.

Right at the top of the original contract.

1. Seller acknowledges that the Forecasted Production Volume is provided for planning purposes only and is not a volume guarantee and Tesla shall have no liability for failure to order the forecasted volumes or any quantity of Products. The binding quantities to be supplied by Seller and the applicable delivery dates will be specified in a Purchase Order ("PO") issued hereunder or, as applicable, in individual call-off schedules (Releases) issued under a PO. Seller agrees that Tesla is not required to issue any POs or Releases for Products, and Seller shall not reject any PO or Release issued hereunder which is consistent with this PPA. Any Tesla entity may issue a PO hereunder, and any Tesla entity or third party which is authorized in writing by Tesla to purchase Products on Tesla's behalf ("Authorized Purchasr:.r!i") may issue Releases for Products pursuant to a PO. Seller shall guarantee delivery of the Products that fall within the forecasted volumes at the prices set forth in this PPA, provided that the pricing and lead time for Products delivered to an address other than the Delivery Location above will be subject to equitable adjustment. Seller shall direct all invoices under a PO to the Tesla entity identified in the PO or, if applicable, to the Authorized Purchaser that issued the applicable Release.

This whole suit is a joke. It is clear tesla didn't have to buy a single part and that is what LBA agreed to.

This agreement was only the right for tesla to buy parts for PO's they submitted. If they didn't submit a PO, LBA has no right to demand tesla to pay for anything. LBA is suing tesla for future parts claiming tesla must purchase parts from them through 2020 and that not telling LBA that they weren't going to use LBA parts is a violation. That makes no sense, the contract makes it clear tesla was under no obligation to buy future parts.

I honestly cannot believe this suit was filed, the contract is pretty damn clear. Tesla isn't going to settle to get rid of bad press, so this filing is just stupid.

They can take the words "good faith" out of context all they want, the contract clearly says tesla doesn't have to buy a single part. Good faith negotiations means nothing here, because the contract makes it clear tesla is not obligated to place future purchase orders.