Shares of Nikola Corp. are down about 11% after the startup’s first earnings call. The company reported a larger-than-expected loss in Q2 2020, about 33 cents per share – analysts polled by FactSet had predicted a loss of 13 cents per share. The company posted revenue of $36,000.

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• Nikola said that COVID-19 disrupted its supply chain, adding that the pandemic is unlikely to affect its long-term plans.
• It said production of the hydrogen-powered semi-truck, the Tre, is slated to begin in Q4 2021. The first units will be manufactured at Iveco’s production facility in Germany. 
• Nikola did not announce new customers, a manufacturing partner for its Badger pickup or a reservation count for the Tre, nor a partner on hydrogen re-fueling stations, which was likely why the stock did not recover post-earnings, writes Al Root at Barron’s.

In the third part of a podcast interview with Automotive News, Elon Musk gave some insight as to why the automaker was suing rival EV company Rivian. Musk accused former Rivian employees of stealing Tesla IP, loading it into personal flash drives and computers and taking it over to Rivian.

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• Musk discussed the idea of “Tesla pixie dust,” where former employees are poached by other automotive and technology companies to “make other companies like Tesla.”
• When asked to what extent Rivian stole Tesla IP, Musk said that it wasn't a "massive percentage."
• On July 23, reports circulated that Tesla filed a lawsuit against Rivian for allegedly stealing trade secrets by poaching employees from the automaker. Tesla accused Rivian of encouraging former employees to steal Tesla IP.
• Rivian denies the claims, saying that it requires employees to confirm they will not introduce the IP of former employers into Rivian systems.

Former Uber engineer Anthony Levandowski was sentenced to 18 months in prison. In March, Levandowski pled guilty to one count of stealing trade secrets from his former employer, Waymo. He asked for house arrest, saying that serving prison time during a pandemic could amount to a “death sentence” but the judge denied the request – although the start of the sentence was delayed due to coronavirus pandemic. As part of the plea agreement, Levandowski agreed to pay $750,000 in restitution.

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• In 2016, Levandowski left Waymo. Before his departure, he downloaded over 14,000 files that contained Waymo intellectual property. He went on to create his own startup, Otto, which was eventually acquired by Uber.
• In February 2019, Uber agreed to pay Alphabet, Waymo's parent company, $245m in an out of court settlement stemming from the case.

Investors, including Alibaba, are adding a $300m into a pre-IPO funding round for Chinese EV startup Xpeng Motors. The Qatar Investment Authority, Qatar’s sovereign wealth fund, has reportedly contributed to the latest round. People with knowledge of the operation say the additional funding is indicative of increased investor demand.

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• Xpeng is expected to launch its U.S. IPO as soon as this quarter.
• In July, the company said it raised about $500m in a Series C+ round, including investors Sequoia Capital China, Hillhouse Capital, and others.
• An Automobility analysis found that Xpeng is one of 11 Chinese automotive startups that successfully raised funds in 2019.
• In April, the automaker released its P7 sedan, which is widely expected to compete directly with Tesla. The vehicle has a range of 438 miles on a single charge.

Auto parts distributor, Onyx Enterprises, said that Volkswagen is infringing its trademarks with its upcoming “ID” line of electric vehicles. In a court filing, Onyx said it owns federal trademarks related to the term “ID,” in relation to automotive part, accessory sales, and other related services.

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• The company is working to prevent VW from using the “ID” branding in the U.S.
• Onyx claims that Volkswagen has been denied federal trademarks on the “ID” name, based on likely confusion with Onyx’s trademarks.
• Volkswagen plans to release the ID.4 by early 2021. The EV will be built in the automaker’s production facility in Chattanooga, Tennessee.

A judge in a German Higher Regional Court (OLG) ruled against a Tesla driver who said he lost control of his vehicle while adjusting his wiper control settings. A district court had sentenced the man to a one-month driving ban and a fine after he was involved in a crash that occurred because he lost control of his vehicle.

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• The judge ruled that Tesla’s in-vehicle display, which also controls many basic functionalities of the vehicle, should only be adjusted in safe driving conditions.
• Model 3 and Model Y vehicles do not feature a windshield-wiper stalk, although the vehicles’ Autopilot cameras can automatically adjust speed based on detected rainfall.

Volkswagen-based Electrify America and AAA are partnering on an electric vehicle subscription venture. The service is launching with about 55 Volkswagen e-Golf vehicles that will initially be available in Sacramento, California. Drivers will pay about $11 per day for the vehicles – a price that includes insurance, maintenance, and roadside assistance.

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• Leases will be available in three, six, nine, and 12-month terms. Volkswagen did not say whether the service will have mileage limits.
• The program will be targeted to low-income residents.

QUICK HITS

• Auto expert Edward Niedermeyer wonders why Teslas are falling out of favor in Norway.
• One Reddit user speculates that Tesla may be using LiDAR maps for some of its autonomous demos.
• Daimler is expanding its partnership with Chinese battery maker CATL.
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