Elon Musk’s bonkers Twitter habits has landed Tesla in scorching water but once more. This time, it’s with JPMorgan Chase, which sued the auto producer in Manhattan federal courtroom on Monday for a hefty $162 million over the chaos that ensued following the Tesla CEO’s now-infamous “funding secured” tweet again in 2018.

The full legislationgo well with—which you’ll learn for your self here—stems from a 2014 association between Tesla and JPMorgan that noticed the financial institution purchase a set of “stock warrants” from the automaker. The general gist of those warrants is that they offer an investor (like JPMorgan) the suitable to purchase shares of a given firm (like Tesla) at a predetermined value on a predetermined date.

In this case, the warrants that JPMorgan purchased in 2014 had been set to run out in June and July of 2021. When that deadline hit, the lawsuit explains, one among two issues was anticipated to occur. If the summer season deadline got here round and Tesla’s inventory value was decrease than the strike value ($560.64), Tesla would depart the deal with out owing something to JPMorgan. But if the inventory value was greater than the strike value, then Tesla could be obligated to fork over a sure variety of shares, or a sure sum of money.

All of it is a fairly lower and dry deal so far as investments are involved, however Musk threw an enormous curveball into the case in August of 2018 when he tweeted that he was “considering taking Tesla private at $420,” and that “funding [was] secured” so as to take action. Eventually, an SEC investigation would ensue. It discovered that hardly any of the main points behind the proposed deal had been truly true, and it slapped Musk with a fraud cost.

But earlier than that (very messy) authorized battle got here to mild, JPMorgan simply noticed a risky firm with a risky inventory value, and it kindly lowered the aforementioned strike value to a really affordable $424.66.

About two weeks later, Tesla threw one other curveball into the deal when it very publicly backed out of its plans to go personal. So JPMorgan adjusted the strike value once more, this time deciding on $484.35. According to the go well with, Tesla didn’t provide “any specific objection,” to the worth when JPMorgan laid out the rationale over a number of convention calls. After these calls, the go well with explains, Tesla “did not communicate further” with the financial institution for six months straight—so JPMorgan stored assuming their association (and the brand new strike value), was kosher.

Apparently, Tesla didn’t see it that method. After these six months, the go well with notes, Tesla’s attorneys despatched JPMorgan a criticism that its value changes had been “unreasonably swift,” and “represented an opportunistic attempt to take advantage of changes in volatility in Tesla’s stock.” JPMorgan responded with a letter of its personal to reject these allegations, to which Tesla by no means responded.

In truth, because the go well with notes, the automaker didn’t “raise any further objections” concerning the deal for 2 years straight, whereas the corporate’s inventory continued to surge within the background. By the time the warrant expired, the go well with notes, Tesla was squarely “in the money”—that means that Tesla wanted to fork over these funds underneath their contract. But when JPMorgan contacted Tesla about their association, the go well with notes that Tesla “renewed its objections to the Adjustments,” and “refused to settle in full.”

This brings us to the go well with that was filed this week. JPMorgan claims that Tesla nonetheless owes the financial institution 228,775 shares that had been value roughly $162,216,629 this previous August when JPMorgan terminated their preliminary settlement.

Musk nonetheless hasn’t publicly acknowledged the go well with practically a day after it was filed, however to be truthful, the CEO has been busy these previous few days. He’s nonetheless participating in a bizarre beef with Bernie Sanders over Twitter whereas offloading frankly obscene quantities of Tesla inventory—roughly seven billion dollars value, to be exact. Musk implied over Twitter that the transfer was associated to the taxes that he barely pays, however the fact is that he’s been planning to dump these shares for months, as a result of his choices had been set to run out. And with Tesla’s inventory value up 136% within the final yr, nicely, it’s simply a good time to take the cash and run.