Nikola Motor has dropped a $2 billion lawsuit it filed against Tesla in 2018. The lawsuit alleges that Tesla stole elements of its designs and applied them to Semi, which Nikola said was taken from their half-truck, the Nikola One.
Nikola claimed that Tesla's design caused "confusion between customers" and thus shifted sales from Nikola to Tesla. "Tesla's infringement undermines Nikola's ability to attract investors and partners, as investors can now work with Tesla to own semi-trailer trucks with alternative fuels." Nikola estimates that Tesla's infringement caused more than $2 billion in damages. The company wrote in the lawsuit. Tesla denied the claims, saying "it is clear that the lawsuit is baseless."
Now, Bloomberg reports, both Tesla and Nikola agreed to drop the lawsuit, and Tuesday's joint filing shows that the two companies have agreed to withdraw any and all claims and counterclaims against each other. The lawsuit has been relatively stalled since 2018. In October, judge James Donato, who presided over the case, filed a new order asking parties to start making progress. According to Donato, both sides lacked a response and shelved the case.
Donato wrote in a Document in October: "The case will not be dismissed for failure to prosecute at this time, but this could change if Nikolai does not move the case forward in an effective and timely manner." "The technical tutorial is scheduled for January 13, 2022. The claim interpretation hearing is scheduled for January 27, 2022. The case will remain administratively closed pending further orders. "The administrative shutdown meant the court essentially labeled it as a low-priority case, rather than the focus at the time."
The trial came to a standstill as former Nikolai lead singer Trevor Milton was indicted on fraud charges related to prosecutors' claims he misled investors about the company's progress. Suspicions about Nikolai began to unravel after a report by Hindenburg Research called the company an "intricate fraud."