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Home » JPMorgan sues Tesla
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JPMorgan sues Tesla

News DeskBy News Desk18 November 2021No Comments1 Min Read
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JPMorgan Chase & Co has sued Tesla Inc for $162.2 million. Tesla is accused of “flagrantly” breaching a contract related to stock warrants.

Legal battle

Tesla sold the warrants to reduce potential stock dilution from a separate convertible bond sale and to lower its federal income taxes

JPMorgan said it had been contractually entitled to adjust the warrants’ terms. This is after “significant corporate transactions involving Tesla”. 

“We have provided Tesla multiple opportunities to fulfill its contractual obligations, so it is unfortunate that they have forced this issue into litigation,” a spokesperson for JPMorgan said in a statement.

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