Tesla CEO Elon Musk ridiculed JPMorgan in a Wall Street interview, saying that “If JPM doesn’t withdraw their lawsuit, I will give them a one star review on Yelp,” Musk added to that statement and warned saying “This is my final warning!”
Also, a fact that is intriguing is JPMorgan chose to fight Tesla Inc. in public. This is not a move to be undertaken by banks. Further, everyone is aware of how prolific the EV industry giant, Tesla is. Moreover, it crossed the $1 trillion valuation mark this year, which was another reason for JPMorgan not to make the issue public.
Last week on November 16, 2021, JPMorgan Chase and Co. (NYSE: JPM) sued Tesla Inc. (NYSE: TSLA) for $162 million, charging it for breach of contract over warrant transactions. JPM claimed that Tesla never paid them. This was a result of the “funding secured” tweet made by Musk back in 2018.
This was earlier hinted when the Securities and Exchanges Commission (SEC) fined Tesla and its CEO for $20 million to settle fraud charges over his tweet in 2018. Additionally, Musk was also removed as the chairman of the company.
The lawsuit is centered around warrant transactions of February-March 2018. It required Tesla to either deliver JPM, shares of its stock or cash if its shares’ “strike price” surpassed the mutually decided amount on the expiration of warrants.
The controversy is set to get worse due to Elon Musk’s ‘warning’ to JPMorgan. However, let’s see if the controversy subsides or will it get worse.