Tesla refused to fix Tesla loan at JPMorgan Chase

A spokesman for Tesla says the bank asked the company for a “loan modification to help service its obligations to Tesla,” but that the company declined. A Tesla Inc. spokesman said the company declined…

Tesla refused to fix Tesla loan at JPMorgan Chase

A spokesman for Tesla says the bank asked the company for a “loan modification to help service its obligations to Tesla,” but that the company declined.

A Tesla Inc. spokesman said the company declined to fix the loan because “what we provided…serves the needs of both parties.” He added: “Tesla continues to believe in the long-term viability of its business.”

Before Elon Musk’s arrest , JPMorgan Chase & Co. sued Elon Musk for $50 million, accusing him of fraud over a series of tweets in August.

The bank said the lawsuits came in response to the posting, in which Musk said that he might take Tesla private and that the company’s board was conspiring against him.

The bank sued in October but postponed the trial until Feb. 19. On Wednesday morning, a judge issued an order dismissing the case.

What the bank asked for was further examination of the authenticity of Musk’s tweets.

JPMorgan claimed it stands to lose $162 million if it paid a loan to the company.

A judge called the loan modification a “last resort” and ruled that it was unlikely to change the outcome of the case.

On Tuesday, when Musk was arraigned on criminal charges related to the tweets, the judge said JPMorgan could not be expected to risk exposing itself to litigation at such a “remote date.”

Musk, 45, has a history of punctuating contentious exchanges with accusations of “collusion” against him by other companies.

He made the first Tesla-related tweet in the lawsuit after he criticized the board for a “behaving like a cult” and hinted that he was going to take the company private.

But it was less than 24 hours after the tweet that Tesla disclosed that Musk’s comments were not backed up by any documentation.

Musk said at the time, “I went outside and really said what I thought… I am responsible for the words that I use.”

The next day, Tesla disclosed that Musk had been reprimanded and kicked out of a board meeting for his tweets.

In the October suit, JPMorgan said that Musk should be financially liable for causing the bank to make a $150 million loan because his tweets misled the board.

But the bank said the board “should not be liable for Musk’s scheme to take Tesla private.”

JPMorgan is “fortunate to have had a close relationship with Tesla for many years and will continue to do so in the future,” a company spokesman said.

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