JP Morgan Chase & Co. agreed. to drop its lawsuit against Tesla Inc. Valued at $162 million after a three-year legal dispute over stock guarantees.
The two companies announced the decision on Friday in a lawsuit in Manhattan, where they agreed to dismiss their claims against each other without the option of refiling the lawsuit. Details of any settlement were not disclosed, and neither company responded to requests for comment.
The lawsuit stems from a 2014 agreement under which Tesla sold stock warrants to JPMorgan. These guarantees allowed the bank to purchase Tesla shares at a specified price on a future date.
JPMorgan alleged that Tesla breached the contract in 2018 after a tweet from Tesla CEO Elon Musk caused the company’s shares to fluctuate wildly. Musk said in the tweet that he was considering taking Tesla private at $420 per share, and claimed to have “secured financing.”
He later abandoned the plan, causing further fluctuations in stock prices.
JP Morgan adjusted the strike price of the orders after the tweet and claimed Tesla owed payments based on those changes. Tesla filed a countersuit in 2023, accusing the bank of acting in bad faith to take advantage of the situation.
The lawsuit’s filing in court on Friday came after a judge ruled against JPMorgan’s request to dismiss a countersuit filed by Tesla in September. The decision ends a controversial chapter between the major US bank and the leading electric car company.