Nikola has dropped its $2 billion patent lawsuit against Tesla in which it claimed that the EV leader stole the design of its EV truck prototype to create the Semi.
Nikola filed the lawsuit in early 2018, asserting that the Tesla Semi’s wraparound windshield, aerodynamic fuselage, front fender and mid-entry door resembled the features of the Nikola One prototype. The EV startup added that the design similarities created ‘confusion’ among customers.
“Tesla’s design has caused confusion among customers,” the lawsuit read. “The confusion has diverted sales from Nikola to Tesla. Further, any problems with the Tesla Semi will be attributed to the Nikola One, causing harm to the Nikola brand.”
Read More: Nikola Sues Tesla For Semi Patent Infringement, Seeks Damages Of More Than $2 Billion
In October last year, it was reported that the court was considering dismissing the case because Nikola had stopped responding to court requests. Nikola did eventually respond and the court agreed to not dismiss the lawsuit. Fast forward a few months and the automaker itself has dropped the case and Tesla has dropped its counterclaims against Nikola, claiming that it stole the design of the One prototype from a Rimac designer.
Nikola has been in a lot of hot water over the past 12 months. In late December, the car manufacturer agreed to pay $125 million to settle civil charges leveled against it by the U.S. Securities and Exchange Commission about defrauding investors and misleading them about its products. The company’s former chief executive, Trevor Milton, has also had criminal charges filed against him and is accused of repeatedly misleading investors about the company’s technology and capabilities.
In one example, prosecutors state that Milton claimed the hydrogen-powered version of the Badger pickup would produce drinking water and have a small drinking fountain. However, he did not speak with engineers about the feasibility of this.
