A tweet sparked a "bloody case," which is common under Musk's fingers. Now, from musk's 2018 release of "consider taking Tesla private at $420 per share." The money has been in place" tweet, it has been 4 years, and the contradiction between JPMorgan Chase and Tesla is still continuing, and there is a growing posture.
Just this past Monday, Tesla countered JPMorgan Chase, mercilessly calling JPMorgan "untrustworthy and greedy."
Tesla said that when the company sold convertible bonds in 2014, JPMorgan Chase unilaterally revised the terms of the warrants it obtained, demanding $162.2 million (about 1.03 billion yuan) from the company. Through this move, JPMorgan Chase & Co. "brought itself a windfall" in addition to the dividend of "billions of dollars" in Tesla's soaring stock price.
Even for its motives, Tesla made a bold statement: "JPMorgan Chase has made excessive demands, both in retaliation for Tesla's neglect of JPMorgan Chase in major business transactions, but also out of the hostility of JPMorgan executives to Musk." ”
Demanding "too much", "retaliation" tesla, full of "hostility" to Musk, a string of hats buckled, almost pointing at the nose to scold Morgan Chase ruthlessly and unreasonablely.
On the other hand, JPMorgan Chase, the same thing, but there is a very different version. In that version, it was Tesla and Musk who were ruthless and unreasonable.
A
As mentioned earlier, Tesla is a "counterclaim" against JPMorgan Chase. JPMorgan Chase sued Tesla in November 2021. It accused Tesla of violating its warrant agreement and demanded $162 million in damages.
It all started 8 years ago. In 2014, JPMorgan purchased warrants from Tesla, which expired in June and July 2021 at an agreed strike price of $560.6388 per share.
If the warrants expire and Tesla's stock price is lower than the strike price, the two companies do not owe each other; but if Tesla stock is higher than the exercise price, Tesla should hand over shares equivalent to the difference between those prices.
Simply put, with a call warrant, JPMorgan chase has the right, not the obligation, to buy shares from Tesla at an agreed price for a specific period of time. If Tesla stock falls, lower than the agreed price, then the warrants are better than nothing, because it is better to buy according to the agreed price than to buy directly to the market.
But if Tesla stock goes up, that's good for JPMorgan.
In JPMorgan's contract with Tesla, JPMorgan has the right to change the price of the warrants when a situation occurs, that is, "if Tesla announces a merger or acquisition."
Nothing happened in the years since the contract was reached in 2014, until 2018, when Musk itched and sent the "infamous" tweet: "Consider taking Tesla private at $420 per share." Funding is already in place. "
After the tweet, the SEC filed civil charges against Musk and Tesla, as well as a $20 million fine, which also led to fluctuations in Tesla's stock price. In particular, the SEC's allegations against Musk are suspected of "securities fraud" on the grounds that the SEC believes that Musk has neither obtained financing nor discussed key trading terms with any potential financiers, and has published "false and misleading" information, which is suspected of manipulating the stock price.
On the other hand, JPMorgan Chase, still holding warrants in his hand, reacted by adjusting the exercise price from the initial $560.6388 to $424.66 per share.
In last year's JPMorgan lawsuit against Tesla, it mentioned that Tesla had originally agreed to hold a conference call, but gave up at the last minute. And on the same day, Tesla announced that it was abandoning privatization.
JPMorgan adjusted again, adjusting the strike price a bit higher to $484.35 per share. This price is a little higher than the exercise price before Tesla announced that it would abandon privatization, but it is still much lower than the original agreement between the two sides.
In the lawsuit, JPMorgan chase said Tesla protested that it didn't need to be adjusted at all because it quickly abandoned its privatization plan.
By the June and July 2021 expiration dates, Tesla stock had risen nearly 10 times, and according to the agreement, it was time for Tesla to make up the difference, but Tesla did not do so.
So there was a lawsuit filed by JPMorgan Chase a few months later against Tesla. JPMorgan Chase said it "again opposed the adjustment" when it contacted Tesla to cash in, settling only some shares but "refusing to settle in full." According to JPMorgan Chase, Tesla still owed 228775 shares, which were worth $162.2 million, according to Tesla's stock price at the time.
JPMorgan chases asked Tesla for the $162 million: "JPMorgan took this action to enforce its right to receive payments. ”
B
And Tesla's attitude is also announced from the latest paper complaint: do not agree.
At the heart of Tesla's claims point to JPMorgan's "adjustment" to the exercise price itself. As Tesla protested against JPMorgan a few years ago, it did not approve of the adjustment. Therefore, in this lawsuit, Tesla claimed that JPMorgan Chase "unilaterally modified the terms of the warrants obtained", which is "untrustworthy and greedy".
As early as the "privatization storm" in 2018, in the face of JPMorgan Chase's adjustment requirements, the relationship between Tesla and JPMorgan Chase seems to have been as cold as an ice cave, and there has been no exchange between the two sides in the two years since then.
When JPMorgan Chase filed a lawsuit against Tesla in November 2021, Musk said playfully: "If JPMorgan Chase does not withdraw the lawsuit, I will give them a bad rating on Yelp (the largest review site in the United States)." And added that this is an "ultimatum" to JPMorgan Chase.
In dealing with the lawsuit, Tesla also expressed why it did not approve of JPMorgan's adjustment to the exercise price. Tesla said the price adjustment was "too rapid" and "speculative", and stressed that only one bank, JPMorgan Chase, made a series of adjustments.
By the way, after Musk said this, there were really a large number of Musk fans pouring into Yelp to give JPMorgan Chase a one-star bad review... In the end, Yelp came out and said that users had been banned from posting new comments on JPMorgan Chase's page.
In Musk's version, JPMorgan chase is the side of speculation, why do you react so quickly? Why are you impatient without any adjustment? Even according to the original agreed price, with the increase in Tesla's stock, you have already made a lot of money, and you are still not satisfied?
At this point, the feud between Tesla and Musk and JPMorgan Chase continues.
Brian Marchiony, a bank spokesman for JPMorgan Chase, said in an email in response to Tesla's counterclaim, "There is no basis for their claims," the New York Post reported. This comes down to the performance of contractual obligations. ”
reference:
1、NewYorkPost：Tesla countersues JPMorgan over contract affected by Musk tweet
2, Wall Street news: "On the bar again!" JPMorgan Chase sued Tesla for $160 million in damages, adding musk bad faith default"
3、BusinessInsider:Tesla fans flood JPMorgan's Yelp page with 1-star reviews as Elon Musk spars with the bank
4. Haitou Global: "Musk on JPMorgan Chase"
5. Phoenix Technology: "Tesla Counterclaim JPMorgan Chase: Want to Borrow Musk's Privatization Tweet to "Get Rich""