Daily Poll: It is unusual for a major bank to sue it's big client.
Nov 15 $JPMorgan(JPM.US$ has sued $Tesla(TSLA.US$ for $162.2 million, accusing Elon Musk's electric car company of "flagrantly" breaching a contract the two corporate giants agreed in 2014 relating to warrants Tesla sold to the bank.
Tesla in 2014 sold warrants to JPMorgan that would pay off if their "strike" price was below Tesla's share price when the warrants expired in June and July 2021.
Musk's Aug 7, 2018 tweet that he might take Tesla private at $420 per share and had "funding secured," and his subsequent announcement 17 days later that he was abandoning the plan, created significant volatility in the share price, the bank said.
Musk's Aug 7, 2018 tweet that he might take Tesla private at $420 per share and had "funding secured," and his subsequent announcement 17 days later that he was abandoning the plan, created significant volatility in the share price, the bank said.
On both occasions, JPMorgan adjusted the strike price "to maintain the same fair market value" as prior to the tweets.
Tesla's share price rose approximately 10-fold by the time the warrants expired this year, and JPMorgan said this required Tesla under its contract to hand over shares of its stock or cash. The bank said Tesla's failure to do that amounted to a default.
Tesla's share price rose approximately 10-fold by the time the warrants expired this year, and JPMorgan said this required Tesla under its contract to hand over shares of its stock or cash. The bank said Tesla's failure to do that amounted to a default.
Any thoughts? Or maybe someone can explain what's going on in the case?
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THEWIZARD : Both are Wall Street Sharks.
Let them fight.
We'll watch the show.
Lawyer's PAYDAY!
LOL.
Smile Baby : 666
xierongliang : 162 mil to them should be... chump change..
carririlin : In addition to huge lawsuits, Musk's shareholding reduction is still continuing
70744617 : Tesla will not win
Raymond N : All I read from this is “J.P. Morgan made a bad investment deal, didn’t get what they want, and are now crying and suing Tesla.”
Silverbat : Bashing with bad news to buy lows
Jamie78 : Just insane Ms. Dolly!!!! Just kinda like the country and market and gas prices et etc. and just like our administration and our President Bc he is now just stuck. Smh