(Reuters) – Tesla Inc. struck back at JPMorgan Chase & Co. on Monday. regarding a disputed bond contract, and held the bank accountable for seeking an "unexpected" after Elon Musk's infamous tweet from 2018 that he could take his electric car business privately.
In a report in Manhattan's federal court, Tesla accused JPMorgan of "evil faith and greed "for demanding $ 162.2 million after the bank unilaterally changed the terms of warrants it received when Tesla sold convertible bonds in 2014.
" JPMorgan pressed its unreasonable claim as a retaliatory action against Tesla both for it had passed JPMorgan in big business deals and by senior JPMorgan executives' hatred of Mr. Musk, "said Tesla.
By changing the terms of the warrants. , JPMorgan "offered itself a pure unexpected" after receiving a "multi-billion dollar payout" from Tesla's soaring stock price, Tesla added.
Mr. Musk is Tesla's CEO and is, according to Forbes, the richest person in the world.
JPMorgan's spokesman Brian Marchiony said in an email: "There is no merit in their claim. It's about fulfilling contractual obligations."
up the fight between the largest US bank and the world's most valuable car company, which has done little business with each other since the disputed agreement.
Warrants give holders the right to buy the company's shares at a set "strike" price and date. involves that company.
JPMorgan said that Mr. Musk's August 7, 2018, tweeting that he might take Tesla privately and had "financed secured", followed by his reversal of price 17 days later, was such a transaction because it made Tesla's share price more volatile.
The bank accused Tesla of def . failed because it did not hand over shares or cash when the warrants expired in June and July 2021, when Tesla's share price had risen about ten times.
Mr. Musk's tweets resulted in a civil lawsuit from the U.S. Securities and Exchange Commission. Musk ended up giving up Tesla's presidency, and he and Tesla were each fined $ 20 million.
Tesla's lawsuit demands unspecified damages.