Nikola Shoots Up Nearly 5% As Judge Allows Its Patent Lawsuit Against Tesla To Continue

Shares of the pre-production electric automaker Nikola Corp NKLA shot up on Tuesday.

The Numbers: Shares of the trucking startup rose 4.74% to close at $11.48 on Tuesday. Nikola shares are down 28.6% so far this year.

The stock has a 52-week high of $37.95 a share and a 52-week low of $9.02.

See Also: Palantir-Backed EV Maker Faraday Future Dubbed The 'New EV Scam In Town' By Short Seller

Why Is It Moving: Shares popped higher after Northern District of California judge James Donato said Nikola's $2 billion patent lawsuit against Tesla Inc TSLA can proceed.

The federal judge on Tuesday in an order said the $2 billion lawsuit will remain “administratively closed” but won’t be dismissed. 

The judge has now assigned Nikola to walk the court through the technologies in question on Jan. 13 followed up with a hearing for infringement on Jan. 27. The suit was shelved last month due to non-responsiveness from both parties.

See Also: Nikola's $2B Lawsuit Against Tesla Days Away From Dismissal: What Investors Should Know

Nikola had in 2018 claimed portions of the Tesla Semi trucks infringed on several design patents that Nikola owns.

Last year, Nikola was investigated by the U.S. Securities and Exchange Commission and the Department of Justice over securities fraud allegations. The company’s founder and former Chairman Trevor Milton was accused of “lying about nearly all aspects of the business” as well as for securities fraud. 

The company, which went public in early 2020, is yet to deliver a single electric vehicle.

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Photo: Courtesy of Nikola