JPMorgan sues Tesla for $162 million in warrants dispute around Elon Musk take-private tweets

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Tesla was supposed to deliver shares or cash if its share price went above a contractually set 'strike price' by a certain expiration date, the complaint says.

in a dispute over warrants, according to court filings out Monday. The bank is seeking $162.2 million plus interest, attorneys' fees and expenses.

JP Morgan alleges that Tesla has breached the terms of a contract that the companies signed pertaining to re-pricing the warrants. Tesla was supposed to deliver shares, or cash, if its share price went above a contractually set "strike price" by a certain expiration date, the complaint says. But a dispute arose when JP Morgan made adjustments to the value of the warrants when Tesla CEO Elon Musk tweeted in August 2018 that he was considering taking the company private for $420 a share, and again when he rescinded the idea of privatizing Tesla a few weeks later.

In the 16 months that followed, Tesla stock bottomed out at a three-year low just under $177 per share in June 2019, before shooting past $420 per share in December that year. Musk was later charged with securities fraud by the SEC. Tesla and Musk agreed to pay $20 million each to settle the suit.The complaint says, "In total, Tesla failed to deliver 228,775 shares of its common stock, leaving JPMorgan with an open hedge position equal to that shortfall.

 

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never invest in something you don’t believe. Simple!

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Looks like you're mad that the news had 0 effect on the stock (amount is 1/10000th of the market cap), so you really feel the urge now to retweet it. Shameless ICE bootlickers :-)

really? Oh myyyyyyyy

Sell more stock Elon!

Adrian__mxli

JamieDimon v elonmusk MortalKombat

Uh oh, the bankers

Cash account at 19B Tesla won't pay 162M

Should have held

(pretends to be surprised)

JamieDimon

RIP jpmorgan

Can’t wait to see elonmusk reply

Trying to get the price down so they can put their top clients in it cheaper..

🤣🤣🤣 JP Morgan is suing someone. That’s like a cast iron pan suing the fire because it was forced to cook bacon!

You mean this jpmorgan 🤔

jpmorgan Chase mellodyhobson So this is a karmic punishment for your stealing of 300+ homes in Texas/other places

Fake news!!! 2018!

Great he has that much and 4.8 billion more in cash.

Oh it's the battle of the big swinging d*cks and we cannot predict who might win...

good

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