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Tesla: JP Morgan sues for $162m after Musk tweets

  • Sun Online Desk
  • 18th November, 2021 05:43:31 PM
  • Print news
Tesla: JP Morgan sues for $162m after Musk tweets

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JP Morgan Chase is suing Tesla for $162m (£121m) over tweets in 2018 by boss Elon Musk that he could take the electric car maker private.

The bank accused Tesla of "flagrantly" breaching a deal it claims should have triggered payments to JP Morgan, BBC reported.

Musk's notorious tweets that he had funding to take Tesla off the New York stock market sparked volatility in the share price.

He later abandoned the move and was fined by the US financial regulator.

JP Morgan's suit, filed in a Manhattan federal court, says the companies had an agreement signed in 2014 that allowed the bank to buy Tesla shares at a set price and date.

Under the deal, Tesla sold so-called warrants to JP Morgan allowing the bank to purchase shares if the "strike" price was below Tesla's share price when the warrants expired in June and July 2021.