$2 Billion Patent Infringement Lawsuit Against Tesla Dropped as Nikola Founder Trevor Faces Criminal Indictment on Fraud Charges

A massive $2 billion patent infringement lawsuit against Tesla has been dropped. With that, Nikola's very own company founder Trevor Milton is now facing a criminal indictment on fraud charges.

Nikola Dropped Its $2 Billion Lawsuit Against Tesla

Nikola Corp. is now reportedly dropping its massive $2 billion patent infringement lawsuit against Tesla Inc. This is as Nikola's company founder Trevor Milton is facing a criminal indictment regarding fraud charges, as reported by Bloomberg.

As per a filing in a San Francisco court, both companies have ultimately agreed to withdraw all claims as well as counter-claims made against each other. To explain, Nikola initially accused Tesla of copying a number of patented designs, including a windshield design, side door, and fuselage.

Tesla Denied Claims Made by Nikola

Tesla's response was that they denied all the claims and decided to countersue. With that, Nikola unveiled the hydrogen-powered Nikola One semi-truck back in 2016 and promised a massive 800 to the 1,2000-mile range that produces no pollution.

According to the story by Engadget, the SEC, however, is now accusing Nikola of deceiving investors. This is shown in one instance through a video that appeared to show the truck moving under power when it was just rolling down a hill.

Nikola CEO Charged with 2 Counts of Securities Fraud and 1 Count of Wire Fraud

Trevor Milton, the CEO of Nikola, was subsequently charged with two counts of securities fraud as well as one count of wire fraud by a grand jury. Milton's take on the matter is that he denies the claims.

The suit was filed back in 2018 when Tesla was actually still losing money and even running short on cash while its stock was struggling, during that time, Nikola was a hot start-up that came with promises of hydrogen-powered semi-trucks and pickups as well as claims of a massive order book, as per an article by CNN.

Tesla's Transition from Losing Money to $1 Trillion Valuation

Ever since then, Tesla has actually gone from perennially losing money to profits to now soaring in market value, finally becoming worth over $1 trillion. To add, it is actually more valuable than the world's 12 largest automakers.

Tesla has yet to release its very own semi-truck, despite certain promises that it is close to becoming ready for the public. With that, its car and SUV sales increased by a significant 87% in 2021, while other automakers were still struggling to find the computer chips and other parts that they needed to build vehicles capable of meeting demand.

Nikola's 2018 l implied it had significant contracts for its own planned trucks. Questions, however, regarding the sales claims were raised back in 2020, just shortly after the company's shares began to trade publicly.

This article is owned by Tech Times

Written by Urian B.