May 03, 2018 03:36 PM IST | Source: Moneycontrol.com

Nikola sues Tesla: Elon Musk-led company dragged to court seeking $2 billion in damages

Nikola is a four-year-old startup which debuted in May 2016 with an electric four-wheel offroad vehicle and a hydrogen-electric semi truck, Nikola One

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Nikola Motor Company has filed a lawsuit in Arizona district court against Tesla Motors accusing Elon Musk-led company of infringing on copyrights held by the startup.

The lawsuit claims that Tesla Motors deliberately copied patents owned by Nikola Motor Company related to hydrogen truck in order to create its electric truck. Nikola is seeking $2 billion in damages.

The lawsuit filed by Nikola puts a number of claims which when viewed collectively proves Tesla ripped technology developed by its engineers, according to the company.

Nikola refers to supposed similarities in the trucks’ front fenders, wraparound windshields, mid-entry doors, aerodynamic fuselage (with similar drag coefficients), among others as evidence that Tesla copied its design.

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The startup also accuses Tesla of poaching its chief engineer months after it unveiled its first semi-truck which points to the fact that Tesla was aware of Nikola’s design features.

Nikola further in the lawsuit says that once the teaser of Tesla’s semi-truck was released, a cease and desist order was served at its offices asking to delay the unveiling of the products till the infringement had been resolved. Though, Tesla never responded, according to Nikola.

Nikola said that the similar design due to infringement by Tesla is causing confusion in the market and Nikola is facing difficulty in attracting investors and buyers. It claimed that damages due to the Tesla’s infringement amounts “in excess of $2 billion.”

In a statement to The Verge, Tesla spokesperson said, “It’s patently obvious there is no merit to this lawsuit.”

Nikola’s spar with Tesla is not new. From choosing names (Nikola Tesla was a famous scientist) to regular barbs at Tesla’s business practices—Nikola has done it all. In a tweet on April 4, Nikola wrote, in an obvious dig at Tesla, “We don't use your money to operate our business. We want everyone to know we have never used a dollar of deposit money in the history of our company.”

Tesla had taken deposits from its customers for its Model 3 which is facing difficulties in production. Thousands of its customers are waiting for their delivery.

Nikola is a four-year-old startup which debuted in May 2016 with an electric four-wheel offroad vehicle and a hydrogen-electric semi truck, Nikola One. It later added another semi-truck named Nikola Two.

The company has announced its plans to open a factory in Arizona with an investment goal of $1 billion.