Saturday, December 4

Tesla sued for $ 162 million | Digital Trends Spanish

JPMorgan sued Tesla for $ 162 million and accused the electric vehicle maker of “flagrantly” breaching a contract they had agreed to in 2014.

This contract was related to the guarantees on shares after the price of their shares suffered a significant rebound.

The lawsuit was filed in federal court in Manhattan and it explains that Tesla sold these guarantees to JPMorgan that would be worth it if their “exercise price” were below the value of the company’s shares when they matured in the middle. of this year.

The appeal focuses on the adjustments the companies made to the deal after a 2018 tweet from Elon Musk in which he announced that he was considering taking the company’s shares off the stock market.

“We have provided Tesla with multiple opportunities to meet its contractual obligations, so it is unfortunate that they have forced this matter into litigation,” a JPMorgan spokesperson said in a statement.

The company explained that these forward contracts (or warrants) had standard provisions that allowed it to adjust its price to protect both parties against the economic effects of “corporate transactions involving Tesla), such as an announcement that the firm was going public.

The value of Tesla shares increased roughly 10-fold by the time these warrants expired this year. Thus, JPMorgan claimed that this forced Tesla by contract to deliver stocks or cash.

“Although JPMorgan’s adjustments were appropriate and contractually required, Tesla has flagrantly ignored its clear contractual obligation to pay JPMorgan in full,” the lawsuit states.

So far, Tesla has not referred to this legal recourse against him.

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