J.P. Morgan Chase & Co. has agreed to drop its $162 million lawsuit against Tesla Inc. after a three-year legal dispute over stock warrants.
Both companies announced the decision on Friday in a court filing in Manhattan, where they agreed to dismiss their claims against each other without the option to refile. Details of any settlement were not disclosed, and neither company responded to requests for comment.
The lawsuit stemmed from a 2014 agreement in which Tesla sold stock warrants to J.P. Morgan. These warrants allowed the bank to buy Tesla shares at a specific price on a future date.
J.P. Morgan alleged Tesla breached the contract in 2018 after a tweet from Tesla CEO Elon Musk caused the company’s stock to fluctuate significantly. In the tweet, Musk said he was considering taking Tesla private at $420 per share and claimed he had “funding secured.”
He later abandoned the plan, causing further stock price volatility.
J.P. Morgan adjusted the strike price of the warrants following the tweet and claimed Tesla owed payments based on these changes. Tesla countersued in 2023, accusing the bank of acting in bad faith to profit from the situation.
The court filing on Friday came after a judge ruled against J.P. Morgan’s request to dismiss Tesla’s countersuit in September. The resolution ends a contentious chapter between the major U.S. bank and the electric vehicle leader.
