JPM lawsuit against Tesla: brief legal summary

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by mankosmash4

I looked up the lawsuit because I wanted to know what tf was going on and the media stories don’t say clearly:

JPM bought a bunch of warrants – call options. lawsuit does not say how many.

strike was $560.6388

the warrants have a provision triggered if Tesla makes a public announcement of Merger or Tender Offer, saying that JPM gets to change the strike price to “account for” the event

Musk tweets $420 funding secured

JPM calculates that Musk’s tweets damages average IV by 26.4%, drops the strike price to $424.66

Musk goes lol I was only pretending. stock goes up. a lot.

JPM only increases the strike to $484.35, not back to the original

Warrants come due 6/3/20 to 7/29/20. stock price is $3,119.50 ($623.90 after split)

Tesla tells JPM to fuck off and only pays at the $560.6388 strike

JPM wants another 228,775 shares it thinks it is owed. Tesla says no. JPM buys them on the open market for an avg of $709.07 and says tesla owes it $162,216,628.81.


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