JP Morgan sues Tesla for $162m over 'flagrant breach' of contract

Elon Musk in firing line over 2018 tweet

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JP Morgan accuses Tesla of breach of contract
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JP Morgan accuses Tesla of breach of contract

JP Morgan is suing Tesla for $162.2m over what it has called a “flagrant breach” of its contractual obligations in a dispute over warrants, according to court filings on Monday (15 November).

The US bank has alleged that the electric carmaker breached the terms of a contract that the companies signed regarding repricing the warrants. On top of the $162.2m JP Morgan is seeking from Tesla, it also demands interest, legal fees and expenses. JP Morgan filed a complaint stating that Tesla sold warrants to the bank in 2014 that would pay off if their "strike prices" were below the carmaker's share price upon expiration of the warrants in June and July this year. The bank said it had authority to adjust the strike price, which it substantially reduced following Elon Musk's twe...

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