🔌 JPMorgan Wishes It Could Pull The Plug On Its Tesla Relationship
It’s a clash of the titans: Jamie Dimon, billionaire CEO of Wall Street behemoth JPMorgan, versus Elon Musk, billionaire CEO of Tesla. The two worked together as JPMorgan helped Tesla with its 2010 IPO, but relations have soured since. Now, the bank is suing Tesla for $162 million over a breach of contract action.
The federal suit was filed in a Manhattan court and centers on a 2018 tweet by Musk about “taking Tesla private at $420” a share, reports The Guardian. JPMorgan claims Musk manipulated the stock price unfairly with the tweet, and is suing for what it believes is the difference in price the Wall Street bank should have made before the ticker value plunged.
This latest lawsuit is “an opportunistic attempt to take advantage of changes in volatility in Tesla’s stock” said Tesla, but the company did not challenge the $162 million sum.
According to the Wall Street Journal, conversations between the two companies over the years “have often upset one side or the other.”
The Musk Effect
This is not the first time Musk is facing repercussions from his infamous tweet. The SEC charged the CEO with fraud in 2018 regarding his comments, and then settled with Tesla on an agreement that company lawyers would review Musk’s tweets before they’re published.
A $162 million spat may not mean much for the two mega-companies worth many billions of dollars each, but for Musk to be alienating someone as powerful as Dimon (someone who could potentially help Musk when he needs it) is a much more consequential development.