JPMorgan Chase and Tesla have decided to settle their legal dispute over a 2014 contract related to stock warrants, marking the resolution of a lawsuit that had accused Tesla of breaching the agreement.
In a one-page court filing on Friday, the two companies announced they would drop all claims against each other.
A spokesperson for JPMorgan stated, “JPMorgan and Tesla have decided to enter into a new commercial relationship and settle the outstanding disputes between the companies. This is a good outcome for all, and we look forward to working together.”
Neither company disclosed the terms of the settlement, and Tesla did not respond to requests for comment.
JPMorgan originally filed the lawsuit in November 2021, seeking $162.2 million.
The bank alleged that Tesla violated the terms of the agreement regarding warrants, which allow holders to buy a company’s stock at a predetermined “strike” price and date.
The dispute stemmed from an August 2018 tweet by Tesla CEO Elon Musk, in which he claimed to be considering taking Tesla private at $420 per share with “funding secured.”
Musk later abandoned the plan, leading to significant volatility in Tesla’s stock price.
JPMorgan argued it had adjusted the strike price of the warrants to reflect the market value before and after Musk’s tweet and claimed Tesla owed payments due to a subsequent 10-fold increase in the stock’s value.
Tesla countersued in January 2023, accusing JPMorgan of seeking an unjustified “windfall” through the repricing of the warrants.
The settlement also follows Musk’s 2018 agreement with the U.S. Securities and Exchange Commission, which requires him to obtain pre-approval for certain tweets from a Tesla lawyer.
The resolution of the case signals a move toward collaboration between the two companies moving forward.