Nov 30, (V7N) - JPMorgan Chase and Tesla have agreed to end their long-standing legal dispute over stock warrants without disclosing the terms of their settlement. The case, stemming from a 2014 contract, was officially dropped through a joint filing in a Manhattan court on Friday.

JPMorgan initially sued Tesla in November 2021, seeking $162.2 million, alleging that Tesla had breached the terms of the warrant agreement. The conflict arose after Tesla CEO Elon Musk’s 2018 tweet about potentially taking Tesla private at $420 per share, claiming he had “funding secured.” This statement, later retracted, caused significant volatility in Tesla’s stock price.

JPMorgan argued that it had adjusted the strike price of the warrants to reflect fair market value following the tweet's impact on Tesla's share price. The bank contended that the dramatic rise in Tesla’s stock value obligated the company to make payments it did not fulfill. Tesla countersued in January 2023, accusing JPMorgan of attempting to exploit the situation for financial gain.

The lawsuit was part of a broader saga involving Musk’s tweets and their legal and financial repercussions. Musk's 2018 SEC settlement requires him to get pre-approval for certain tweets related to Tesla’s operations.

Both JPMorgan and Tesla have declined to comment on the settlement or its terms, leaving the resolution details undisclosed.

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