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.
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.
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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