US Bank JP Morgan lawsuit tesla, Claimed by $162.2 million to break”blatantlyContractual obligations.
In a lawsuit filed in federal court in New York, JPMorgan has filed an indictment against the electric car maker it runs. Elon Musk, from Failure to pay you in the form of shares or money as required by the contract.
In a deal signed in 2014, Tesla sold subscriptions of the shares to JP Morgan that allowed the bank to buy these shares at a pre-set price ($560.63) before the deadline (June-July 2021).
If, at the expiration of this contract, if the value of the Tesla stock was more than the agreed price, the manufacturer had to make up the difference by paying the bank.
If it were inferior, Tesla had nothing to pay JP Morgan.
to cover up a strong fluctuations in inventory, JP Morgan reserves the right to readjust the price for a purchase exercise in the event of unforeseen events.
In August 2018, Musk announced on Twitter that he intended to remove Tesla from the stock market at $420 a share, before abandoning the idea a few weeks later.
Then the securities authorities forced Musk to leave the Tesla board of directors because of this information.
It was on the company and himself Pay a fine of $20 million.
JP Morgan decided to cut the price to exercise the right to buy to $424.66 per share, after Musk’s initial tweet, and then raised it to $484.35 when the entrepreneur decided to back off his idea of leaving Wall Street.
A third adjustment, to $96.87, was made in August 2020 when Tesla decided to split its shares from 5 to 1. The bank warned Tesla about these changes, but the manufacturer ignored or rejected them.
“Although JP Morgan’s adjustments were appropriate and required by the contract, Tesla refused an agreement on the exercise price (purchase) and payment of the full amount owed to JP Morgan.,” says the bank in its complaint.
JP Morgan estimates that Tesla owes him the equivalent of 230,000 shares at the end of the contract, i.e. $162.2 million According to the price of the paper on that date.
Tesla shares are worth over $1,000 in the stock market.
In a call with Agence France-Presse, Tesla did not comment.
France Press agency
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