David Benoit
Tesla Inc. countersued JPMorgan Chase & Co. on Monday, intensifying a dispute over the payout for a bond sale the bank helped arrange in 2014.
JPMorgan /zigman2/quotes/205971034/composite JPM +2.10% started the fight with a lawsuit in November, claiming it was owed around $162 million more for a set of warrants it had acquired as part of the bond sale. Tesla /zigman2/quotes/203558040/lastsale TSLA +3.11% on Monday said the bank wasn’t entitled to the billions of dollars in stock it got last year from those warrants.
The dispute is lifting the curtain on a testy relationship between the nation’s biggest bank and the world’s most valuable auto maker. JPMorgan has been spurned by Tesla on business dealings and executives at the companies have clashed , including chief executives Jamie Dimon and Elon Musk, The Wall Street Journal has reported.
Tesla claimed that the feud is what is really behind JPMorgan’s suit. It alleged the bank’s actions amounted to “bad faith and avarice.”
“JPM pressed its exorbitant demand as an act of retaliation against Tesla both for it having passed over JPM in major business deals and out of senior JPM executives’ animus toward Mr. Musk,” Tesla alleged.
An expanded version of this report appears on WSJ.com.
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