Tesla sued by bank after Musk tweet jibe

Image copyright Getty Images Image caption It’s Tesla’s first major customer dispute Tesla is being sued by JPMorgan Chase after the bank says the electric car maker owes it more than $162m (£122m) in…

Tesla sued by bank after Musk tweet jibe

Image copyright Getty Images Image caption It’s Tesla’s first major customer dispute

Tesla is being sued by JPMorgan Chase after the bank says the electric car maker owes it more than $162m (£122m) in refunds.

JPMorgan said the company owed it $160.75m after Mr Musk posted a tweet during a court hearing that the bank had “sat on a $2bn Tesla loan for 2 years”.

The bank said Tesla should have made up the difference by reporting results on time.

Tesla has denied having the loan and said it disagrees with the claim.

Tesla has been in a commercial dispute with JPMorgan Chase for some time. The bank loaned Tesla $1.67bn (£1.3bn) in 2016 but it allegedly defaulted in February.

JPMorgan said in the court filing that the $1.67bn loan was used to launch its mass-market model, the Model 3, but it was due back after a period of three years, and by this point Tesla had lost investor confidence.

Even now, Tesla is not paying it back, even though Mr Musk posted an apparent admission of its existence on Twitter during a court hearing on Monday, the Wall Street Journal reported.

The bank sued the company the next day, demanding a refund. Tesla denied the loan and said it does not agree with the claim.

“JPMorgan’s lawsuit is without merit and we will defend ourselves vigorously,” a Tesla spokesperson said.

Monday’s court hearing was a court session on a bailout Tesla received from Saudi Arabia’s sovereign wealth fund earlier this year.

During the hearing, Mr Musk apologised for his Twitter outburst, telling the judge he had been “flat out wrong” about a tweet on a Saudi fund stake in Tesla.

The tweet to Saudi energy minister Khalid al-Falih had stated that a recent tweet of a tweet of an investor seeking a $2bn dollar investment in Tesla was “made in error”.

“I apologize for my error and for causing any confusion or concern,” Mr Musk said at the hearing, The Wall Street Journal reported.

The JPMorgan tweet referred to Mr Musk’s previous tweet, in which he also apologised for a “mistake” over the buyout of SolarCity by Tesla.

It was those tweets which triggered the lawsuit.

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