JPMorgan sues Tesla, demands $5 billion
Date 16 Nov 2021 time 20:00
JPMorgan sues Tesla, demands $162 million in compensation
JPMorgan Chase & Co. has sued Elon Musk’s electric car maker Tesla, demanding $162 million, or about $5,300 in compensation. million baht for breaching contracts related to share warrants after the share price skyrocketed
According to a lawsuit filed in a Manhattan court, in 2014, Tesla sold stock warrants to JPMorgan, under which Tesla would have to hand over stock or cash if the company’s share price exceeds the used price. Rights (Strike Price) within the expiration date of the warrants which corresponds to the month of June and July 2021
The dispute arose after Elon Musk tweeted on Aug. 7 that he was considering taking the company off the stock market at $420 per share. and said that he had already prepared a source of funds This resulted in the company’s stock falling heavily later. Before Musk abandoned the idea 17 days later.
Tesla’s share price has risen approximately 10 times by the time the warrant expires, while JPMorgan urges Tesla to comply with the terms of the contract, which is to deliver stock or cash to the company. breach of contract
Tesla has yet to comment on the issue.
Photo by JOHN THYS / AFP
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