Fledgling electric-vehicle maker Nikola Corp. is dropping its $2 billion patent lawsuit against rival Tesla Inc. as its founder continues to fight criminal charges that he misled investors.
The companies have agreed to withdraw all claims and counter-claims against each other, according to a joint filing Tuesday in federal court in San Francisco.
Tesla denied stealing the designs and filed a counterclaim. But the lawsuit stalled last year after U.S prosecutors charged Nikola founder and former chief executive officer Trevor Milton with securities fraud, alleging he misled investors about the company’s prospects. Milton has denied the claims.
The case is Nikola Corp. v. Tesla Inc., 18-cv-07460, U.S. District Court, Northern District of California (San Francisco).