Written by Cláudio Afonso | LinkedIn | X
JPMorgan Chase & Co. has decided to end its three-year legal battle against Tesla Inc., dropping a lawsuit that sought $162 million in connection with stock warrant agreements, a court filing on Friday showed.
In September, a U.S. District Judge rejected JPMorgan’s request for a pre-trial ruling in its favor on breach-of-contract claims against Tesla.
“JPMorgan and Tesla have decided to enter into a new commercial relationship and settle the outstanding disputes between the companies. This is a good outcome for all and we look forward to working together,” Bloomberg reported citing a JP Morgan spokesperson.
JPMorgan filed a lawsuit in 2021 alleging Tesla owed the bank $162 million in shares under a 2014 agreement. The deal was designed to help Tesla manage potential stock dilution from convertible notes and secure federal tax benefits.
Under the agreement, Tesla would owe JPMorgan payment in shares or cash if the company’s stock surpassed a specified price. But a 2018 tweet from Tesla CEO Elon Musk, in which he claimed he was considering taking the company private at $420 a share with “funding secured,” disrupted the arrangement, the bank claimed.
The company is preparing to start rolling out version 13 (V13) of its Full Self Driving software. Tesla’s Vice President of AI Software, Ashok Elluswamy, teased earlier this week the update a few days after announcing that Tesla is “aiming to get to feature complete for unsupervised FSD with the v13 series.”
Written by Cláudio Afonso | LinkedIn | X
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