JP Morgan sues Tesla for £120m over claims it ‘flagrantly’ breached contract amid Musk Tweet fiasco
An investment banking giant is suing Tesla for £120million over claims it ‘flagrantly’ breached a contract.
JP Morgan bought warrants – which are contracts to buy shares at a specific price – from the electric car maker in 2014.
But the bank changed the prices twice in the wake of controversial tweets from Tesla’s boss Elon Musk in 2018, in which he said he had secured funding to take the company private.
Twitter storm: JP Morgan changed its warrant prices twice in the wake of controversial tweets from Tesla’s boss Elon Musk (pictured) in 2018
The tweets got Musk got into trouble with US regulators, who fined him £15million.
And the deal quickly fell apart with Tesla arguing the changes the investment giant made to the prices were unnecessary.
The bank argues Tesla did not fully honour the agreement and owes it a shortfall of £120million.
Musk, 50, has sold £5.8billion shares in the group in a matter of days, after another string of controversial tweets where he asked people on Twitter to vote on whether he should sell £7.4billion of stock to pay tax.