He writes for the financial newspaper The The Wall Street Journal.
On Monday last week, news came that major bank JPMorgan is suing Tesla for $162.2 million. The bank believes that Tesla has breached a subscription rights contract after the stock price rose sharply.
In the wake of the lawsuit, a feud emerged between CEOs Elon Musk and Jamie Dimon at JPMorgan.
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Star on Yelp
According to the Wall Street Journal, Musk despised Damon for years. Musk used banks other than JPMorgan, while the Tesla empire gradually grew. At one point, the bank approached Tesla with an offer, which Musk flatly refused.
For its part, the bank recently signed a contract with Tesla’s arch rival Rivian Automotive, which produces electric trucks.
According to the newspaper, the two top managers have tried to become friends over the years – but have consistently failed. Both are known for running dirty public laundry against their competitors. But while Damon greatly regrets his behavior, Musk has stuck to his position.
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The lawsuit now relates to a case from 2014.
“Tesla has given us many opportunities to fulfill contractual obligations. Therefore, it is unfortunate that they have imposed this issue on the court system,” JPMorgan wrote in a statement.
“If JPMorgan doesn’t sue, I’ll have to give them a star on Yelp,” Musk responded to the Wall Street Journal.
“This is my last warning,” Musk says.
Yelp is a website where regular people review and comment on stores and restaurants.
The apple of discord
According to the lawsuit, Tesla sold the subscription rights to JPMorgan, which would provide a return if the pre-set price was lower than the actual market value of Tesla shares when the subscription rights expired in June and July 2021, NTB writes.
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Tesla’s stock price rose nearly tenfold when the subscription rights expired, and JPMorgan believes Tesla is obligated to hand over either a share of its stock or its money.
According to the bank, Tesla refused to pay the additional amount it had committed.(Terms)Copyright Dagens Næringsliv AS and/or our suppliers. We would like you to share our cases using a link that leads directly to our pages. All or part of the Content may not be copied or otherwise used with written permission or as permitted by law. For additional terms look here.
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