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Tesla Nikola Corporation Under Pressure Amid Exciting EV Ambitions

Tesla Inc. (NASDAQ:TSLA) and Nikola Corporation (NASDAQ:NKLA) had a week to forget after coming under immense pressure amid a fierce correction in the overall stock market. The two companies, seen as the future of the auto industry, are already entangled in a fierce standoff with Nikola alleging that Tesla stole a design for its electric truck.

Tesla Ambitions

Amid the sideshows, Tesla completed a successful ‘Battery Day’ whereby it affirmed its long term plans and how close it is, to unveiling an autonomous car for the mass market. The introduction of a battery that guarantees six times more power and five times more energy affirms Tesla’s ambitions of replacing gas-powered cars.

Similarly, CEO Elon Musk, has confirmed they are working on producing a self-driving electric car that will go for as little of $25,000 over the next three years. The announcement helped Tesla stock recoup some of the losses after shedding more than 10% in the recent past.

Amid the sell-off, it’s becoming increasingly clear that Tesla is more than just a car company. The company lies well ahead of its competition thanks to a robust charging station with a second to none self-driving software.

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Nikola Woes

Amid The Tesla sell-off, Nikola has not been spared either day after, inking a landmark deal with auto giant General Motors Company (NYSE: GM). The EV Truck Company, founded six years ago, is yet again on the spotlight, forced to defend itself over fraud claims by short-seller Hindenburg Research.

The report alleges that Nikola is misleading investors with its world-changing mission on the development of hydrogen-powered cars. The report has already forced the company’s founder and Executive Chairman Trevor Milton to step down.

Nikola rose to prominence on General Motors, inking a strategic partnership betting on the company’s ambitions of developing zero-emission vehicles that run purely on Lithium batteries and hydrogen fuel cells. Hindenburg Research, which bills itself as a leader in forensic research, claims that Nikola is an intricate fraud built on dozens of lies.

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Ruchi Gupta

Ruchi Gupta covers various beats from finance to technology and from lifestyle to hobbies. She has an MBA in Finance. Ruchi enjoys writing on celebrities and political news. She likes traveling and exploring places.

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