Lion Electric (LEV) has filed a civil lawsuit against EV maker Nikola Motors (NKLA) in the US District Court for Arizona, alleging that Nikola attempted to steal customers after breaking its battery pack purchase agreement with Lion.
The purchase agreement between Lion and Romeo (Nikola) was signed on November 2, 2020, and was designed to supply battery packs for 296 Lion 8T trucks. As part of the agreement, Romeo was obligated to “sell Lion the battery packs at the prices” established under the contract.
However, on May 24, 2022, Romeo raised prices by around 65% over the ceiling price stated in the agreement. This prompted Nikola to acquire Romeo on August 1, and Nikola stated on a later M&A call that it would wind down or terminate Romeo’s supply agreements with its other customers within six months.
In an email from October, Romeo claimed it could not deliver the promised battery packs to Lion, therefore rejecting the order and violating the terms of the agreement. Lion Electric has since begun producing its own lithium-ion batteries.
In its lawsuit filing, Lion Electric says the actions have inflicted “substantial damages,” including the risk of future Lion 8T orders. Furthermore, Lion is alleging Nikola tried to steal its existing customers by contacting them and offering to sell them Nikola’s electric vehicles in lieu of Lion’s.
The lawsuit seeks damages for breach of contract, unjust enrichment, and tortious interference with contractual relations. It remains to be seen how this case will play out in court.
FAQ
Q1. When will electric cars be available in the UK?
A1. Electric cars are already available in the UK and can be purchased from a variety of dealerships.
Q2. Where can I find electric car charging stations near me?
A2. You can find electric car charging stations near you by using online maps or apps such as PlugShare or ChargePoint.
Q3. Which electric car is the best?
A3. The best electric car depends on your individual needs and preferences. Some popular models include the Tesla Model 3, Nissan Leaf, and Chevrolet Bolt EV.
