JPMorgan Warns Elon Musk Not to Fail in His ‘Biggest Failure to Date’

jmp1r.jpg Tesla CEO Elon Musk. (Michael Loccisano/Getty Images) A note released by JPMorgan Chase is taking some heat on social media for making its displeasure with Elon Musk a public matter. The bank told…

JPMorgan Warns Elon Musk Not to Fail in His ‘Biggest Failure to Date’

jmp1r.jpg

Tesla CEO Elon Musk. (Michael Loccisano/Getty Images)

A note released by JPMorgan Chase is taking some heat on social media for making its displeasure with Elon Musk a public matter. The bank told The Wall Street Journal it will seek a court judgment to “require Mr. Musk to pay money for fraud.”

The JPMorgan tweet links to a document in which the bank says Tesla Inc. owes it $162 million from a November tweet in which Musk says he was considering taking the automaker private. The tweet sparked a short-selling squeeze, in which shorts, who bet that a stock will drop, rushed to cover their positions at prices higher than the stock was trading, causing a temporary spike. In September, an arbitration complaint was brought against the CEO by Saudi Arabia’s state-backed fund for his statement, which was made before Musk had begun negotiating an underwritten $2.6 billion buyout deal.

Last night, according to the Journal, the bank cited an internal report that showed that “half of all Nasdaq stocks were subject to trader covered calls, meaning Tesla was the most likely candidate to be a target.”

Given that Tesla is currently more than $10 billion short, and that the company has an upcoming self-imposed deadline of hitting 500,000 orders for the new Model 3 sedan to bridge the gap to profitability, the JP Morgan statement — if taken seriously — would be a very serious development. And perhaps it should have been.

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