Money is not the story: The Wall Street Journal claims that the huge lawsuit filed about a week ago against the leading electric car maker does not necessarily stem from a financial dispute between the companies, but mainly from a personal dispute between their CEOs.
According to the report, the chairman and CEO of JPMorgan Chase Bank, Jamie Damon, and Tesla CEO, Elon Musk, have been in a personal conflict for a long time. According to sources close to the two, every meeting between them in recent years Ended with at least one side injured, and any reconciliation attempt ended in aggravation of the conflict.
Apparently, the source of the conflict is in the hesitation of the fifth largest bank in the world, and the largest outside China (in terms of the value of assets under management), to invest in Tesla at the beginning of its path, about a decade ago. This is due to doubts from bank executives regarding the potential of electric cars.
Since then, the bank seems to have tried to correct this “mistake” over and over again – but Musk refused. In 2010, the bank worked with the company on its offering, and in 2014 it received stock options from it. However, Musk refused to sign a deal that would make the giant bank Tesla’s main lender, preferring again and again to enlist the help of smaller competitors in the field – Morgan Stanley and Goldman Sachs. In his personal business, Musk also uses Morgan Stanley’s services. Over the past decade, G.P. Morgan Chase has earned $ 15 million from advising on Tesla’s deals – while Goldman Sachs has earned $ 90 million. The situation has worsened to such an extent that since 2016 the giant bank and the carmaker have not executed any deal that is between them.
Now, it will be recalled, the bank claims that Tesla has breached a contract with it, demanding $ 162 million from it. “We have provided Tesla with many opportunities to fulfill its contractual obligations, so we urge them to sue us on this issue,” the bank said last week.
Musk, for his part, responded to the Wall Street Journal that “if JP Morgan does not pursue their lawsuit, I will give them a one-star review on Yelp. That’s my last warning!”
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