The financial institution and Tesla entered into a series of warrant transactions in 2014 which required Tesla to deliver either shares of its stock or cash to JPMorgan if, at the time the warrants expired in 2021, Tesla's share price was above the contractual "strike price", according to the filing.
In the period of time between JPMorgan entering into the warrant transactions and the warrants expiring, the filing said that JPMorgan had adjusted the warrant strike price in response to share price movements following Tweets issued by Elon Musk in 2018 in which he suggested taking the company private and then, later, after car company published a post indicating that it was abandoning a going-private proposal.
A subsequent, "mechanical" adjustment to the strike price was also triggered in 2020 following Tesla's 5-to1-stock split, the filing added.
The filing stated that Tesla sent a letter to JPMorgan about the 2021 Warrants in February 2019 alleging that the adjustments made by JPMorgan pursuant to the terms of the warrants were "unreasonably swift and represented an opportunistic attempt to take advantage of changes in volatility in Tesla's stock".
"Even though JPMorgan's adjustments were appropriate and contractually required, Tesla has refused to settle at the contractual strike price and pay in full what it owes to JPMorgan," the filing alleged. "Tesla is in flagrant breach of its contractual obligations. As a result, more than $162 million is immediately due and payable to JPMorgan by Tesla," the filing further claimed.
An article by MarketWatch posted on Monday said that Tesla did not immediately respond to a request for comment.
Shares of Tesla were approximately 1.5% lower in recent, pre-market trade on Tuesday. JPMorgan's shares were unchanged.
Price: 166.85, Change: +0.29, Percent Change: +0.17
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