December 6, 2021

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JPMorgan sues Tesla for 1.4 billion – E24

The main bank is suing the electric car maker following Elon Musk’s suggestion on Twitter to delist the company in 2018.

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Major bank JPMorgan Chase is suing Tesla with a demand for payment of $ 162 million, equivalent to 1.4 billion kroner. It emerges from court documents filed in Federal Court in Manhattan, which have been reproduced by, among others, Reuters And Bloomberg.

The bank claims that its subscription rights expired above the redemption price, as a result of Elon Musk’s Twitter messages in 2018, when he threatened to make the company private.

JPMorgan believes they should have lowered the redemption price, in order to maintain the same market value as it was before Musk’s Twitter speech.

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From Twitter message to Elon Musk scam case: Over 10% drop in opening (2018)

He thinks Tesla owes money

JPMorgan writes in court documents that although the bank’s adjustments were appropriate and contractual, “Tesla refused to settle the contractual redemption price and pay the amount owed to the company.”

Moreover, the bank wrote that Tesla clearly violated its contractual obligations, and that the electric vehicle manufacturer must “immediately pay more than $162 million to JPMorgan.”

As early as February 2019, the bank complained about the adjustments, writing that the adjustments were “unreasonably fast” and “represent an opportunistic attempt to exploit the volatility in Tesla stock.”

As part of several protective rights transactions in 2014, Tesla agreed to pay the bank in the form of shares or cash if the price of Tesla’s stock was above the redemption price agreed in June and July. If the stock price is less than the redemption price, the bank will not receive anything. The Bank believes that the shares were significantly above the original and adjusted redemption prices at the end of the period.

Misk’s presence on Twitter

Twitter messages in 2018 weren’t the end of the Tesla founder’s move on the platform.

Last weekend, Musk went out against Bernie Sanders. On Sunday night, he wrote a scathing letter to left-leaning US Senator Bernie Sanders.

Sanders published a post calling for higher taxes on the richest:

We must demand that the rich pay their share. Sanders Dott Books.

It didn’t go well with musk, like According to leaked tax documents Almost do not pay taxes.

Musk wrote: ‘I keep forgetting that you’re alive’ In a Twitter post.