Tesla Inc TSLA CEO Elon Musk has thrown more fuel on his fiery rivalry with Fisker Inc FSR CEO Henrik Fisker.
What Happened: A new Teslarati report indicated DeLorean executives are being sued by Karma for pursuing a separate venture. In response to the article, which was shared on Twitter, Musk called out the Fisker CEO for doing the same thing to Tesla 15 years ago.
"How ironic, that’s what Henrik Fisker did to Tesla in 2007! Karma is a …," Musk said Wednesday (Sept. 28) via tweet.
Karma filed a lawsuit against DeLorean executives in August. The company claimed a group of former employees were told to find investors for electric vehicle development, but instead pursued outside ventures. The executives maintained they were allowed to establish a new company as needed.
Why It Matters: In 2007, Fisker was contracted by Tesla to help design the Model S, but he left the EV company to design the Fisker Karma hybrid sports vehicle shortly after collaborating with Tesla, per InsideEVs.
Tesla got rid of Fisker's work and started over when it learned that Fisker was launching a competing company. Tesla then hit Fisker with a lawsuit, claiming he stole confidential information, but Fisker won the case in arbitration.
He went on to launch Fisker Automotive before filing for bankruptcy in 2013. The company's assets were purchased by Wanxiang Group in 2014 before being renamed Karma Automotive. Fisker's design remains on the market today as the Karma GS-6.
Fifteen years after the lawsuit, tensions are still high. When Musk announced that he planned to buy Twitter Inc TWTR in a $44 billion deal, Fisker deleted his Twitter account, saying he didn't want his free speech to be controlled by a competitor.
Fisker Inc, which launched in 2016 and went public via SPAC in 2020, commenced production of its flagship Ocean SUV in November.
Tesla produced more than 365,000 vehicles and delivered over 343,000 in the company's most recent quarter.
FSR, TSLA Price Action: Fisker shares are down 53% year-to-date. Tesla shares are down about 47% since the start of the year.
Originally published on Sept. 28, 2022
Photo: Henrik Fisker, Fisker Inc; Elon Musk, Daniel Oberhaus, Flickr Creative Commons
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