JPMorgan drops $162m lawsuit against Tesla over Musk's 2018 tweet

JPMorgan Chase & Co. has dropped its $162 million lawsuit against Tesla Inc., ending a three-year legal battle over disputed stock warrant transactions. The move was formalized in a joint court filing on Friday, with both sides agreeing to dismiss their claims without the option to refile.

The decision marks a fresh chapter for the financial giant and the electric vehicle maker, who announced plans to rebuild their commercial relationship. “This is a good outcome for all, and we look forward to working together,” a JPMorgan spokesperson said in a statement on Saturday.

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The lawsuit stemmed from a 2014 agreement where Tesla issued stock warrants to JPMorgan. Under the pact, Tesla was required to pay the bank in cash or shares if its stock traded above a specific price. However, an August 2018 tweet by Tesla CEO Elon Musk—where he claimed to have “funding secured” to take the company private at $420 a share—sparked volatility in Tesla’s stock and disrupted the deal.

JPMorgan alleged it was entitled to adjust the warrants’ strike price due to the tweet and subsequent developments. Tesla countered, accusing the bank of bad faith and exploiting the situation for financial gain. The dispute escalated with each side filing claims against the other.

A turning point came in September, when a federal judge denied JPMorgan’s request for a pretrial ruling in its favor, leaving key issues unresolved. Legal analysts said the ruling likely influenced the bank’s decision to drop the case.

Details of any settlement remain undisclosed. Tesla did not immediately respond to requests for comment on the resolution, according to a Bloomberg report.

The case, which highlighted the financial ripples of Musk’s controversial tweet, was filed in Manhattan’s US District Court under Judge Paul Gardephe.