Investor's Corner
Tesla sued by JPMorgan over Musk’s 2018 ‘funding secured’ Tweet
Tesla is being sued by JP Morgan Chase in a massive $162 million lawsuit over stock warrants linked to CEO Elon Musk’s infamous “funding secured” Tweet from 2018 when Musk hinted toward taking the company private at $420.
Court filings made public on Monday and reported by Barron’s showed JPMorgan Chase is alleging Tesla of branching a contract in regards to the repricing of warrants. Following Musk’s Tweet in 2018 that hinted he was thinking of taking Tesla private at $420 per share, the stock responded with volatility, which caused losses. JPMorgan Chase’s lawsuit outlines a potential payout of $162.2 million, plus interest, fees, and expenses.
JPMorgan filed the complaint in the Southern District of New York, and details a contract with Tesla where the automaker was legally obliged to deliver shares or cash if the stock price passed certain levels by a certain time. This is known as a “strike price.” Barron’s said this was a stock warrant transaction, which is similar to stock options contracts available to retail investors.
The lawsuit’s most critical point is that Tesla did not deliver the cash or shares. JPMorgan was forced to reprice the stock warrants after Musk Tweeted, “Am considering taking Tesla private at $420. Funding secured. Shareholders could either to sell at 420 or hold shares & go private.”
Shareholders could either to sell at 420 or hold shares & go private
— Elon Musk (@elonmusk) August 7, 2018
Musk’s Tweet resulted in a settlement with the SEC, which required the CEO to step down as Tesla’s Chairman, pay a $20 million penalty, appoint two new independent directors to the Tesla board, and “establish a new committee of independent directors and put in place additional controls and procedures to oversee Musk’s communications.”
The Tweets spiked Tesla’s stock price, which, in turn, caused JPMorgan to readjust the value of the warrants. After Musk and Tesla confirmed a few weeks later that the stock would not be taken private, JPMorgan readjusted the value of the warrants once again. Tesla sold warrants to JPMorgan with provisions that protected both entities from potential volatility that could come from significant corporate transactions, according to JPMorgan. The provisions gave the banking firm the right to adjust and readjust the warrants in cases of significant announcements that could cause stock movement. JPMorgan said the provisions were put in to protect both parties from “exactly the type” of announcement that Musk Tweeted.
Tesla, however, did not take kindly to JPMorgan repricing the warrants and stated that the bank’s move was “unreasonably swift and represented an opportunistic attempt to take advantage of changes in volatility in Tesla’s stock,” according to a letter that was included in the filing.
Credit: Tobias Lindh/Youtube
JPMorgan did not readjust the strike price following the second modification, the filing said, as the warrants expired in June and July 2021. Tesla’s stock rose nearly 900% from the 2018 Tweet to the end of July 2021, most of the growth taking place during 2020, when TSLA shares rose over 700%. The prices were above the original and readjusted strike prices.
The lawsuit said that Tesla and the bank have agreed that the automaker should settle the undisputed number of shares earlier in 2021. However, Tesla is still uneasy with the fact JPMorgan readjusted the strike prices, but JPMorgan said that failure to settle the adjusted strike price could conclude with a default. JPMorgan’s suit said Tesla failed to deliver 228,775 shares, meaning the bank is stuck with an open hedge position that equals the shortfall. “Even though JPMorgan’s adjustments were appropriate and contractually required, Tesla has refused to settle at the contractual strike price and pay in full what it owes to JPMorgan,” the firm said in its complaint. “As a result, more than $162 million is immediately due and payable to JPMorgan by Tesla.”
The case, JPMorgan Chase Bank v. Tesla Inc., 21-cv-09441, is available to read here.
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Investor's Corner
NASA taps SpaceX to launch the telescope that could unlock new worlds
NASA’s Roman Space Telescope heads to orbit this August aboard SpaceX’s Falcon Heavy with massive scientific ambitions.
SpaceX is set to play a central role in one of NASA’s most anticipated science missions in years. The company’s Falcon Heavy rocket, currently the most powerful operational launch vehicle in the world, will carry the Nancy Grace Roman Space Telescope into orbit on August 30 from Kennedy Space Center in Florida. Roman is now in final preparations inside the Payload Hazardous Servicing Facility, where on June 26 technicians used a crane to lift the observatory into a specialized stand for fueling and pre-launch testing.
Roman is named after Nancy Grace Roman, NASA’s first chief of astronomy, whose career helped shape how the agency approaches space science.
NASA chose SpaceX Falcon Heavy because of Roman’s needs to reach a specific orbit far from Earth, well beyond where a standard Falcon 9 can deliver it. The Falcon Heavy, which first flew in 2018, has since become NASA’s go-to option for missions that need serious muscle without the cost and complexity of older launch systems.
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Roman will carry a field of view at least 100 times wider than the Hubble Space Telescope, meaning it can photograph enormous swaths of the universe in a single shot rather than the narrow slices Hubble captures. That difference in scale is significant. While Hubble reshaped our understanding of the cosmos over 30 years, Roman is built to work faster and wider, surveying hundreds of millions of galaxies at once.
One of Roman’s most compelling capabilities is its potential to discover and photograph planets orbiting stars outside our solar system, and with enough precision to directly image planets that would otherwise be lost. That means scientists could study the atmosphere and surface characteristics of distant worlds rather than simply confirming they exist. Combined with Roman’s sweeping field of view, the telescope could detect thousands of exoplanets, and some of those planets may be in habitable zones where liquid water could exist. No telescope currently in operation has this level of power and capability. That capability alone could change what we know about other worlds, and perhaps finally answer the question: are we the only intelligent lifeforms in existence?
What Roman actually finds once it reaches orbit is an open question, and that is exactly what makes this launch worth watching.
Elon Musk
California snubs Tesla in its newly passed EV incentive that favors Rivian and Lucid
California passed a $135 million EV incentive that rewards Rivian and Lucid while sidelining Tesla
California just drew a line in the EV incentive sand to put Tesla on the wrong side of it. The state recently passed a $135 million program offering first-time electric vehicle buyers a direct incentive with no application required, but the rules were written in a way that leaves Tesla at a structural disadvantage compared to Rivian and Lucid.
The program caps eligible vehicles at $50,000 for new EVs and $25,000 for used ones. That pricing threshold rules out a significant portion of Tesla’s lineup, though some lower-priced Model 3 and Model Y configurations would still qualify. California-based automakers are exempt from the price cap entirely, regardless of what their vehicles cost. Rivian, headquartered in Irvine, and Lucid, based in the San Francisco Bay Area, both benefit from that exemption. Rivian’s R2 starts at roughly $45,000 but has versions above the cap. Lucid’s Air and Gravity start at $70,990 and $79,990 respectively, well above any threshold a non-California company would face.
California hits Tesla Cybercab and Robotaxi driverless cars with new law
Tesla built its reputation and a significant portion of its early market share in California, where EV adoption has consistently led the nation. The company operates its original factory in Fremont, California, and the state was home to Tesla’s headquarters for most of its existence. That changed in 2021 when Tesla moved its corporate headquarters to Austin, Texas. Since then, the relationship between the company and California Governor Gavin Newsom has been openly adversarial, with Musk and Newsom trading public criticism on multiple occasions.
California’s EV incentive landscape has shifted repeatedly in recent years, and Tesla has previously lost eligibility for state-level programs as its vehicles exceeded income-adjusted price thresholds. The federal $7,500 EV tax credit, which Tesla models have qualified for and lost depending on policy cycles, is no longer available after it expired without renewal, making state-level programs more meaningful to buyers than they have been in years.
The practical impact for buyers is more nuanced than the headline suggests. California residents purchasing a Tesla under $50,000 for the first time can still access the incentive. But the exemption written for California-based manufacturers is a structural advantage that rewards where a company plants its headquarters flag rather than where it builds its products, and Tesla moved that flag to Texas.
Elon Musk
SpaceX’s newest logo confirms everything about what it’s become
SpaceX officially absorbed xAI under the SpaceXAI brand, completing the largest private merger in history.
SpaceX made its corporate transformation official in May 2026 when Elon Musk posted on X that xAI would cease to exist as a standalone company. “xAI will be dissolved as a separate company, so it will just be SpaceXAI, the AI products from SpaceX,” he wrote.
A new SpaceXAI logo was announced today, visually embedding the xAI letters inside the SpaceX identity, which can be seen as a deliberate design choice that signals the merger is not a partnership but a full absorption and XAi a core function of the same company. The same way Starlink is not a separate brand but a SpaceX product. The announcement closed the loop on a process that began February 2, 2026, when SpaceX acquired xAI in the largest private merger in history, valued at $1.25 trillion. SpaceX at $1 trillion and xAI at $250 billion.
We are now @SpaceXAI. pic.twitter.com/ema66xDWC9
— SpaceXAI (@SpaceXAI) July 6, 2026
The reason SpaceX bought xAI was stated plainly by Musk at the time of the deal: to build orbital data centers. SpaceX had simultaneously filed with the FCC to launch up to one million satellites designed to function as AI compute nodes in low Earth orbit, escaping what Musk described as the energy constraints limiting AI development on Earth.
xAI provided the AI software stack, with Grok, the X platform, and the Colossus supercomputer infrastructure in Memphis with over 220,000 NVIDIA GPUs, while SpaceX provided the rockets, Starlink, and the capital base to fund it. The two companies needed each other. xAI was burning $2.5 billion in losses on $250 million in revenue. SpaceX was generating an estimated $8 billion in profit on $15 billion in revenue and needed an AI narrative to command the valuation it was targeting for its IPO.
What SpaceX has done, regardless of how the orbital AI vision ultimately plays out, is walk into a public market as something no company has been before: a rocket manufacturer, satellite internet provider, AI software company, social media platform, and supercomputer operator under one ticker. Whether that combination is worth $2 trillion depends entirely on which of those businesses you believe in most.