Recently, JP Morgan Chase sued Tesla over $162 million in stock warrants. According to the lawsuit, JP Morgan accused Musk’s electric vehicle company Tesla of stiffing the bank on a deal that the bank helped arrange in 2014. Bloomberg explains the complicated financial details of the deal of stock warrant deals. JP Morgan filed the case in the US District Court for the Southern District of New York.
Elon Musk, the CEO of Tesla, responded to JP Morgan Chase’s $162 million lawsuit by threatening JP Morgan with a “one-star review on Yelp.”
JP Morgan issued a public statement about the case: “We have provided Tesla multiple opportunities to fulfill its contractual obligations, so it is unfortunate that they have forced this issue into litigation.”
Still, Musk’s tone was lighter and more humorous. The Wall Street Journal asked Musk for comments. Musk jokingly said, “If JP Morgan does not withdraw their lawsuit, I will give them a one-star review on Yelp.”
Obviously, JP Morgan sued Tesla should’t be a surprise. Musk and JP Morgan CEO Jamie Dimon have been fighting for years. And the conversations between the two firms often upset executives from both organizations.
Fortunately, Tesla isn’t struggling to find banks to work with due to its record-breaking valuation of more than $1 trillion. And in the deal in the lawsuit, other bankers were happy with the results.
According to his comments to the Wall Street Journal, Musk isn’t much bothered by the lawsuit. Furthermore, $162 million won’t affect the growing car company. Similarly, Tesla is in a strong position, owing to its high valuations this year and increasing consumer sales
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