Tesla countered JPMorgan Chase, claiming it had sought windfall

According to foreign media reports, on January 24, Tesla launched a counterclaim against JPMorgan Chase on a disputed bond contract, saying that JPMorgan Chase had made a "windfall" after Musk tweeted in 2018 that "he may privatize Tesla".

Musk (Image: Tesla)

In a filing in federal court in Manhattan, Tesla accused JPMorgan chase and "dishonesty and greed," and when Tesla sold convertible bonds in 2014, JPMorgan unilaterally revised the terms of the warrants it obtained and demanded that Tesla pay $162.2 million.

Tesla said, "JPMorgan Chase's excessive demands are both in retaliation for Tesla's neglect of JPMorgan Chase in major business transactions and out of JPMorgan executives' hostility towards Musk." ”

Tesla added that by amending the terms of the warrants, JPMorgan received "billions of dollars in dividends" from Tesla's soaring stock price, "giving the company a pure windfall."

In response, JPMorgan spokesman Brian Marchiony said in an email: "Tesla's allegations are baseless, and the so-called modification clause is actually a performance of contractual obligations."

Tesla's counterclaim marks an escalation of the struggle between America's largest bank and the world's most valuable car company, which has had little business dealings with the two companies since the disputed bond contract.

Warrants give holders the right to purchase shares of the Company at a set "execution" price and date. JPMorgan said Tesla's warrants allowed it to lower the exercise price to offset any economic impact from a "major corporate deal" involving the company.

JPMorgan chase said Musk said on Twitter on August 7, 2018, that he might take Tesla private and "already get funded," and that 17 days later he changed course, which made Tesla's stock price more volatile.

JPMorgan chases tesla for default because Tesla failed to hand over shares or cash when the warrants expired in June and July 2021. By then, Tesla's stock price had risen about 10-fold.

Musk's "privatization" tweet sparked a civil lawsuit by the U.S. Securities and Exchange Commission. Eventually, Musk relinquished tesla's chairmanship, and he and Tesla were each fined $20 million. Tesla's counterclaim against JPMorgan Chase & Co. claims damages, but the exact amount is unknown.