The US automaker allegedly violated the arrest warrant contracts with the investment bank
JP Morgan and changes in the value of orders The bank then requested $162.2 million plus interest and legal fees as compensation. When Tesla CEO Elon Musk tweeted the idea of making the company private for $420 a share in August 2018, JP Morgan made changes to the value of the warrants and did the same when Musk changed his mind a few weeks later.
Tesla replies: ‘Unreasonably fast adjustments’ – While JP Morgan supports the contractual right to make such adjustments, Tesla stated in a letter that these changes were “unreasonably rapid and represent an opportunistic attempt to profit from changes in the volatility of Tesla’s stock.” According to the complaint, “Tesla failed to deliver 228,775 shares of its common stock, leaving JP Morgan with an open hedge position equal to that shortfall.”
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