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JPMorgan sues Tesla over $162 million dispute related to 2018 Elon Musk tweets

Elon Musk’s tweet caused Tesla Inc. got in trouble again.

JPMorgan Chase & Co.
JPM,
-0.18%

on Monday sued Tesla
TSLA,
-1.94%
,
seeks to recover $162.2 million and accuses the electric-car company of breach of contract over warrant deals that JPMorgan claims Tesla never paid.

Filed in Manhattan federal court on Monday detailed a multi-year dispute and claimed “Tesla blatantly ignored its express contractual obligation to pay JPMorgan in full.”

The case revolved around a series of warrant transactions from February and March 2018 that required Tesla to hand over the investment bank shares or cash if the “actual price” of Tesla shares was higher than the agreed amount. agreement when the warrant expires.

JPMorgan claims warrants have lost significant value after CEO Musk tweeted in August 2018 that Tesla had “secured the capital” to go private at $420/share and the following volatility That affected the stock price until the warrants expire in June and July 2021 – with the share price above both the original and actual prices.

Also read: Tesla’s Elon Musk spends another weekend insulting people on Twitter

JPMorgan said the strike price adjustments were made after Musk’s 2018 tweets and again after Tesla’s 5-for-1 stock split in 2020, but “Tesla has refused to settle on strike price under contract.”

According to the lawsuit, Tesla claimed in 2019 that JPMorgan’s adjustments were “an opportunistic attempt to capitalize on changes in volatility in Tesla’s stock.”

Tesla, which disbanded its media relations team last year, did not immediately respond to a request for comment Monday.

Musk and Tesla each fined 20 million USD by the Securities and Exchange Commission to address fraud allegations against the tweet, Musk was removed as chairman of the company and Tesla agreed to pre-approval of his tweet (which the SEC said on this early year Tesla didn’t make it).

Tesla stock was in the $50-$60 range in February and March 2018, and between $600 and $700 in June and July 2021. Since the summer, Tesla stock has increased by 41% , which closed at $1,003 on Monday.

https://www.marketwatch.com/story/jpmorgan-sues-tesla-for-162-million-in-dispute-related-to-elon-musks-2018-tweets-11637028759?rss=1&siteid=rss | JPMorgan sues Tesla over $162 million dispute related to 2018 Elon Musk tweets

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