Arizona-based electric vehicle (EV) maker Nikola Corp. (NASDAQ: NKLA) has dropped a $2 billion patent infringement lawsuit against Tesla (NASDAQ: TSLA), according to a report published by Bloomberg.
A joint filing in a San Francisco federal court stated that both companies decided to take back all claims and counter-claims against each other.
Nikola filed a lawsuit against Tesla in 2018, alleging that the EV giant copied its patented designs. These include the designs of a wrap-around U-shaped windshield, side door and fuselage.
Meanwhile, Tesla filed a counterclaim and denied copying any design.
The lawsuit got stalled in 2021 after Trevor Milton, the founder and former CEO of Nikola, was charged with securities fraud. The U.S prosecutors accused him of misleading investors about the prospects of the company.
Nikola manufactures heavy-duty commercial battery EVs and fuel-cell EVs, as well as offers energy solutions.
At the time of writing, NKLA stock was trading 1.5% higher in the pre-market session on Thursday. The shares closed 4.3% down on Wednesday.
The company’s upcoming earnings release for the fourth quarter of 2021 is scheduled for February 24, 2022.
Overall, the stock has a Hold consensus rating based on 4 Holds. The average Nikola stock price prediction of $13.67 implies 38.4% upside potential. Shares have lost 44.6% over the past year.
TipRanks data shows that financial blogger opinions are Neutral on Nikola at 60%, compared to the sector average of 72%.
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