Wall Street shorted Tesla, and Tesla filed a countersuit against jpmorgan

2022-06-10 0 By

Short sellers betting on future stock price declines are focusing on Tesla, a leading U.S. technology stock, CNBC reported on Monday.Using data from S3 Partners, an asset management firm, CNBC said short-sellers invested $114bn in shorting, up 11.6% from a year ago.Short sellers are attacking Tesla, a leading U.S. tech stock.Short selling refers to an investment strategy that borrows stocks without owning them and orders them to sell if the price of a particular stock is expected to fall.A technology that is used to earn ultra-short-term bid-ask spreads by buying a stock at a low price and returning it to the stock within the settlement day if the stock price falls.The big short is saying that the stock has a good chance of falling in the future.Tesla is the most targeted company by short-sellers.Short sellers are estimated to have earned about $2.3 billion this year as Tesla has plunged nearly 12 percent.Tesla, an electric car company led by Elon Musk, has filed a countersuit against jpmorgan Chase, the largest BANK in the United States.Tesla filed a lawsuit in federal court in New York on Monday, claiming that “jpmorgan chase & Co. ‘s dishonesty and greed resulted in a breach of subscription rights dispute.”Tesla sued JPMORGAN chase for 162 million dollars in November last year, claiming that tesla violated its ipo subscription agreement.”Jpmorgan is targeting a windfall,” Tesla said, while “Tesla has refused to do significant business with jpmorgan, and JPMORGAN management has shown hostility toward Musk and is retaliating.”J.p. Morgan spokesman Brian Marchionne issued a statement in response to Tesla’s counterclaim, retorting: “Tesla’s claims are not worthy of consideration.If Tesla fulfills its contractual obligations, it’s over.”According to Reuters, the dispute between Tesla and jpmorgan dates back to 2014.Jpmorgan had a contract to buy the rights to tesla’s new shares under which Tesla would pay either stock or cash if the stock price rose above the price at which the rights were exercised when they expired in June and July last year.Then Musk’s request to consider a delisting in 2018 caused turmoil in Tesla’s stock price, and jpmorgan chase further lowered the exercise price of the new option and demanded tesla pay $162 million based on the adjusted price.At the time, Musk was also being sued by U.S. securities regulators.He reached a $20 million settlement with the SECURITIES and Exchange Commission and resigned as chairman of the board as part of the settlement.