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Elon Musk Broke? Tesla Owes A Multi Million Dollars Amount To The Big Banks

The company allegedly defrauded JPMorgan in 2014, when they were still looking for a way to finance the project. In addition, Elon Musk aggrieved the financial group through Twitter.

JPMorgan has sued Tesla, alleging that the electric car company owes the bank $ 162 million in connection with a 2014 stock guarantee deal. The dispute centers on the adjustments the companies made to the deal after a tweet from Tesla CEO Elon Musk in 2018, and the consequences this entailed.

The lawsuit was filed Monday night in the Southern District of New York. Tesla was silent when asked for comment from the press and disbanded his American press team. JPMorgan bought a series of equity guarantees from Tesla in 2014, when the company was still trying to finance the construction of its first Gigafactory.

Stock guarantees give the buyer (JPMorgan, in this case) the right to buy shares in a company (Tesla) at a fixed price within a specified period of time. Those that JPMorgan bought from Tesla in 2014 were due to expire in June and July 2021.

Initially, the companies agreed to a price of $ 560.6388 (479.79 euros). If the warranties expired and Tesla's stock price was lower than the strike price, neither company would owe the other anything. But if Tesla's stock price was above the strike price at expiration, JPMorgan says that Musk's company was basically supposed to deliver shares equal to the difference between those prices.

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