Nikola withdrew its design infringement lawsuit against Tesla and claimed $2 billion

Electric vehicle maker Nikola Motor has withdrawn a $2 billion infringement lawsuit filed against Tesla in 2018, accusing Tesla of stealing many design elements of its electric trucks and incorporating them into Semi. Nikolai argued that the designs were plagiarized from their semi-trailer, the Nikola One.

Nikola claims that Tesla plagiarized a large number of design elements of the company's electric trucks, which caused "customer confusion" and thus drew customers from Nikola to Tesla. "Tesla's infringement undermines Nikola's ability to attract investors and partners because investors can now work with Tesla to own an alternative fuel truck," the company said. Nikola estimates that Tesla's infringements cost it more than $2 billion. ”

Tesla denied the allegations, saying "it is clear that this lawsuit has no value."

Now, both Tesla and Nikola have agreed to drop the lawsuit, and joint documents published by both companies show that both companies have agreed to withdraw all claims and counterclaims against each other. The lawsuit has been relatively stalled since 2018. Last October, judge James Donato, who presided over the case, filed a new order asking parties to start making progress. Donato said there was a lack of response from both sides and the case was shelved for that reason.

Donato wrote in a Document in October: "At the moment, this case will not be dismissed for failure to prosecute, but if Nikolai does not push the case to resolution in an effective and timely manner, the situation may change." The technical hearing will take place on January 13, 2022, and the claim interpretation hearing is scheduled for January 27, 2022. Pending further orders, the case will remain in a state of administrative termination. "This means that the court essentially labeled it as a low-priority case, not the current focus."

The suspension of the trial may be due to the alleged fraud of Trevor Milton, the former chief executive of Nikola, who prosecutors say misled investors about the company's progress. Suspicions about Nikolai began to erupt after Hindenburg Research reported that the company was an "intricate fraud."