JPMorgan sues Tesla for $162 mln over warrants, tweets Musk

JPMorgan sues Tesla for $162 mln over warrants, tweets Musk ...

After its share price went up, JPMorgan - New York, Nov 15 - - JPMorgan Chase & Co sued Tesla Inc (TSLA.O) on Monday for $162.2 million, accusing Elon Musk's electric car company of flagrantly flagging a stock warrant with its share price soared.

According to a complaint filed in Manhattan, Tesla in 2014 sold JPMorgan warrants that would pay off if their "strike price" were below Tesla's share price upon its expiration in June and July 2021.

After Musk abandoned the idea 17 days later, it substantially reduced the strike price. The chairman said that it made the decision to change the timing of the announcement, while deciding if the idea was to change and have it turned back.

The bank said that Tesla failed to do that amounted to a default.

"Though JPMorgan's adjustments were appropriate and contractually required," he said in the complaint, "Tesla has flagrantly ignored its clear contractual obligation to pay JPMorgan in full."

Tesla did not respond immediately to the omissions in the wake of the market's hours.

According to the complaint, Tesla sold the warrants to lower possible stock dilution from separate convertible bonds sale and to lower its federal income taxes.

JPMorgan said it was contractually entitled to adjust the warrants' terms following "significant corporate transactions involving Tesla."

In February 2019, the automaker complained that the bank's adjustments were "an opportunistic attempt to capitalize upon changes in Tesla's stock volatility," but didn't challenge the underlying calculations, JPMorgan said.

Tesla's tweets led to the civil charge against the U.S. Securities and Exchange Commission and a $30 million fine against both him and Tesla.

The trusts principles.

You may also like: