Honda, Nissan Eye Shared Vehicle Software Platform by 2029 
Aon Nears $17 Billion Deal to Buy USI Insurance From KKR 
Asian Currencies Mixed as Yen Nears 160, Oil Surges 
Asian Stocks Slide as U.S.-Iran Fighting Lifts Oil Prices 
Oil Prices Rise as US-Iran Conflict Threatens Middle East Supply 
Trump Says ExxonMobil Among Oil Majors Planning Venezuela Return 
German Retail Sales Drop 3.4% in July 
Street Poller Media and The Boom of the Street Interview Ad Industry 
Trump Secures Drug Pricing Deals With Nine Pharma Companies 
OpenAI Rejects Apple Trade Secret Theft Claims 
Bank of England Sees Surge in Higher-Risk Collateral 
China Manufacturing PMI Contracts Again as Recovery Remains Fragile 
Global Markets Brace for Fed Rate Hike as Oil Tops $91 
SpaceX Mobile Network Could Cost Up to $130 Billion, Bernstein Says 
Itochu Offers $1.56 Billion to Privatize Dentsu Soken 
Star Entertainment Shares Fall After A$307 Million FY2026 Loss 
Jefferies Names AMEC Top China Semiconductor Equipment Pick 
Add as a preferred source on Google
JPMorgan Chase & Co filed a lawsuit against Elon Musk's Tesla Inc. on Monday, Nov. 15. Elon Musk's company was sued for $162.2 million for alleged breach of contract related to stock warrants.
According to Reuters, JPMorgan Chase & Co filed its complaint at a federal court in Manhattan. Aside from the said amount, the bank is also seeking payment for interest, attorneys' fees, and other expenses involved in the litigation.
In the complaint, the New York-headquartered investment banking company said Tesla signed a contract pertaining to re-pricing the warrants. Based on the agreement for warrant transactions, the electric vehicle maker is required to deliver shares of its stock or cash if the share price reaches above the set contractual "strike price" once the warrants expire.
JPMorgan Chase & Co, which is also the largest bank in the United States, said the warrants lost considerable value after Elon Musk tweeted on Aug. 7, 2018, that he was mulling on taking his EV company private. He shared he had funding for the privatization at $420 per share. The bank suggested Musk's tweet affected the value that it has remained below Tesla's share price after the warrants expired in June and July of this year.
"JPMorgan demanded the due shares or cash, but Tesla has flagrantly ignored its clear contractual obligation to pay JPMorgan in full," part of the complaint lodged by the bank reads. "JPMorgan brings this action to enforce its right to payment."
CNBC reported that the conflict between Tesla and JPMorgan Chase & Co. came about when the latter made adjustments to the price of the warrants following Musk's tweet in August 2018. The former claimed it had a contractual right to make adjustments to the value after the social media posting and again when Tesla CEO later invalidated the idea of privatizing his company.
After more than a year since the tweet, Tesla stock changed and hit a three-year low of just under $177 per share before surging above $420 per share in December 2019. Later, the Tesla chief was charged with securities fraud by the U. S. Securities and Exchange Commission, and the EV company and its owner agreed to pay $20 million each for settlement.
Meanwhile, JPMorgan & Chase Co. said in the suit filing: "In total, Tesla failed to deliver 228,775 shares of its common stock, leaving JPMorgan with an open hedge position equal to that shortfall."
