As Elon Musk continues to sell his Tesla (NASDAQ:TSLA) shares in bulk, with the company’s chief executive already unloading $930 million worth of stock (934,000 shares), JP Morgan Chase (NYSE:JPM), on the other hand, has decided to sue the electric car manufacturer for over $162 million.
JP Morgan claims that Tesla breached a contract concerning stock warrants that were due this year. The financial juggernaut claimed that Tesla Inc was meant to provide the cash consideration or bank shares when the contract expired.
Details of the lawsuit
The lawsuit claimed that the electric car manufacturer flagrantly ignored its contractual obligation to settle its dues in full.
The legal dispute between the world’s most valuable auto manufacturer and the biggest bank in the United States is complicated by Elon’s claims that he had gotten funding allowing him to take the company private, only to reverse his statements shortly after.
His original assertion pushed the SEC (Securities and Exchange Commission) to sue the car maker’s chief executive for fraud. This suit led to many different actions against Elon Musk, one of which was relinquishing the chairman role.
According to the lawsuit, JP Morgan Chase repriced these options twice, something Tesla claimed was “unreasonable” at that time. However, JP Morgan rejected the auto manufacturer’s complaint and said that the adjustment of warrant prices was provided for in the contract agreement.
Elon’s sale of his Tesla shares
The shares Elon Musk sold on Sunday mean that the chief executive has already sold about 7.3 million shares worth around $7.8 billion since he said that he would sell up to 10% of the stocks he holds.
The most recent share sales came after he mocked US Senator Berne Sanders for tweeting that the uber-rich should also have to pay taxes like everyone else. Mr. Sanders, in his tweet, said, “we must demand that the extremely wealthy pay their fair share. Period.”
Elon Musk replied:
“I keep forgetting that you’re still alive. Want me to sell more stock, Bernie? Just say the word….”
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