for $162.2 million, accusing Elon Musk's electric car company of breaching a contract related to stock warrants following Musk's 2018 tweet that he might take Tesla private.
According to a complaint filed in Manhattan federal court, Tesla entered warrant transactions that required it to deliver shares of its stock or cash if its share price was above the contractual "strike price" when the warrants expired. The largest U.S. bank said the warrants lost substantial value after Musk's Aug. 7, 2018 tweet that Tesla had "funding secured" to go private at $420 per share, and remained well below Tesla's share price upon expiring in June and July 2021.
"JPMorgan demanded the due shares or cash, but Tesla has flagrantly ignored its clear contractual obligation to pay JPMorgan in full," the complaint said. "JPMorgan brings this action to enforce its right to payment."Reporting by Jonathan Stempel in New York Editing by Chris ReeseSubscribe for our daily curated newsletter to receive the latest exclusive Reuters coverage delivered to your inbox.
Musk sold 2.1 million options today. And again created a little theater during the weekend for smoke and mirrors. Of course he knew this one was coming.
Still salty about 2018 J.P.? You could have just bought shares and held. Grow a pair. That why you PT so low?
HODL
BillyM2k 👁
They’ll be lucky to get 1/100 of that
elonmusk 🤔