JPMorgan Chase and Co Filed a Case Against Tesla Inc, claiming that Tesla has breached a contract that was made back in the year 2018. Tesla TSLA has to pay 162.2 million dollars to JPMorgan Chase & Co, which were due.
This case which was filed in Manhattan on Monday, stated that Tesla had clearly breached the contract made with JPMorgan Chase & Co. Tesla was supposed to fulfill and pay back in full just as the contract clearly stated, but it had ignored it for long, and now things have gone to court. This was recorded on Monday.
It was decided that Tesla would pay back to the investment bank if the warrant expired and at the time of expiry if Tesla had a specific gain of the share price. Now that it happened and Tesla had gained almost ten folds of its original shares, Tesla pretended to forget the warrant transactions it made at the start of the year 2018 and is refusing to pay back JPMorgan Chase & Co now.
Back in August of the year 2018, Elon Musk tweeted that Tesla got its legal and secured funding because of which it will become a private company having each share rate of four hundred and twenty dollars. He said in his tweet that the payments would be made and surety would be given once the prices are surged above the original and the decided strike prices and also when the warranted date of expiry is passed.
The expiry date was set to be in the month of June or July of this year, 2021. Because of Elon Musk’s tweet, JPMorgan Chase & Co lost its value at a great rate and had to face many setbacks as Elon Musk decided to breach the contract.
Elon’s decision to take Tesla private, was not to be decided alone. Since JPMorgan Chase & Co and Tesla had signed a contract together, so the adjustments must only have been made through both parties’ mutual agreement. The contract gave the right to JPMorgan Chase & Co to decide on any changes that Tesla plans to make.
When they sent a notice to Tesla about this unfair adjustment, they replied that Tesla socks were volatile to being benefitted from these changes, so they were made quickly so that the opportunity is not lost.
JPMorgan Chase & Co insisted that Tesla knowingly breached the contract which was made years ago. Tesla did not reprice the warrants as it was supposed to According to the contract that was signed by it. The complaint that was filed further mentioned that Tesla was supposed to pay through giving away its shares or through cash, but it has not paid back through any means.
Tesla had dissolved its media team, and because of that, it did not respond quickly on this matter. Tesla has not responded, not even a single time, on this topic.
In the next sixteen months after 2018 February and March, Tesla saw a decline of around one hundred and seventy-seven dollars for each share. In the middle of 2019, this was the biggest loss in the previous three years of the company’s stock. Later in December of this year 2019, the stocks rose to four hundred and twenty dollars each share which was way more than the previous share.
It is clear that The stocks were spiked almost three times after Tesla and JPMorgan Chase & Co made an agreement through a contract, but Tesla refused to admit and pay back. When it comes to companies like Tesla and JPMorgan Chase & Co, money is not what should be considered a priority; instead, the relationship between the two companies matters the most. If they end up on bad terms, then both the companies will face huge losses and damage.
JPMorgan Chase & Co wants to be paid for the interests that keep increasing with every passing day as Tesla delays its payments along with the court and lawyer fees. It wants to be refunded for all of these, which is very pricy and expensive, not to mention.
Later in the year U.S. Securities and Exchange Commission fined Elon Musk and charged him for security fraud because of the Tweet that he shared on his Twitter account. Tesla had to pay almost twenty million dollars to cover this fine, and along with that, Elon Musk has been taken down from the company’s post of Chairmanship. After this, Tesla has acknowledged making Elon Musk tweets Pre-approve but SEC mentioned that Tesla already said this earlier but could not do so.
Next, In the month of November 2021, the Tesla shares rose to one thousand and thirteen dollars each share, and it will continue to rise in the future too.
Back at the beginning of the year 2018, when all this started in the month of February and March, Tesla shares were somewhere between a range of almost fifty to sixty dollars, and since then it has risen to about six hundred dollars to seven hundred dollars in the middle of this year 2021. This year has brought Tesla a lot of good news, and this week on Monday, Tesla had seen another rise of about forty-one percentage points which is around one thousand and three dollars.
Despite the latest problems and huge setbacks that Tesla has been facing, it has still managed to see a rise of around three percentage points.
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