Musk is the CEO of the company.
A pool.
In a recent WSJ article, Musk fired back at the bank, saying it was involved in a legal dispute with his company.
If JPM doesn't withdraw their lawsuit, I will give them a one star review on Yelp.
The bank says that it is owed $162 million from the warrant trade.
According to a report from The Wall Street Journal, an ongoing legal dispute has elicited a response from Musk.
If JPM doesn't withdraw their lawsuit, I'll give them a one star review. This is my last warning. Musk told The Wall Street Journal. Musk said that serious allegations deserve serious responses and that he would talk to the manager of JP Morgan.
The dispute is about the warrants that were given to the EV maker. The warrants gave the bank the right to buy shares ofTesla at a pre-determined strike price, which was incredibly profitable given the company's recent ascent to a $1 trillion valuation.
The value of the warrants would be impacted by the strike price being changed if the company announced it was exploring a sale. The strike price of the warrants was lowered by the bank after Musk said he had funding secured, according to the lawsuit.
The strike price was raised by JPMorgan after the deal didn't happen. When the warrants expired in June of this year, the original strike price was the basis for the payments.
If the strike price was adjusted, the bank would be owed an additional $162 million.
The lawsuit said that the strike price changes were "opportunistic" and that it was the only bank to make such an adjustment. Other banks might have declined to adjust their warrant strike prices for business reasons, according to the reply from JPMorgan.
The relationship between the two companies seems to have always been tense. The bank helped the company go public in 2010, but was ranked behind other banks. According to Dealogic, Goldman has paid $90 million to Goldman to do capital markets work over the past decade, but it has paid less than the fifteen million dollars thatTesla has paid to JPMorgan.
According to The Wall Street Journal, the consumer bank of JP Morgan was initially hesitant to finance electric vehicles fromTesla due to concerns about the long-term value of electric vehicle batteries. Musk may provide some insight into how the dispute can be settled.
Business Insider has an original article.
