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Tesla owes $162 million to JPMorgan, according to the bank.

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Tesla

Tesla owes $162 million to JPMorgan, according to the bank.

Tesla has been sued by JPMorgan, which claims it owes the bank $162 million in relation to a 2014 stock warrant arrangement. The disagreement revolves around changes made to the agreement as a result of Tesla CEO Elon Musk’s “[f]unding secured” tweet in 2018 and the ensuing backlash.

The complaint was filed in the Southern District of New York late Monday. 

According to the claim, JPMorgan purchased a number of warrants from Tesla in 2014, when the firm was still trying to fund the building of the initial Gigafactory, as first reported by Reuters.

Stock warrants provide the buyer (in this example, JPMorgan) the right to buy shares in a firm (in this case, Tesla) at a predetermined price within a specified time frame. JPMorgan bought warrants from Tesla in 2014 that were slated to expire in June and July 2021.

Initially, the firms agreed on a $560.6388 “strike price.” Neither firm would owe the other anything if the warrants expired and Tesla’s stock price was less than the strike price. However, JPMorgan claims that if Tesla’s stock price was higher than the strike price at expiration, Musk’s business was obligated to hand over stock equivalent to the difference in the two prices.

Because this was such a large and intricate financial transaction, JPMorgan made certain that all legal safeguards were in place. One was to protect Tesla’s stock price in the event of any major mergers or buyout announcements. If anything similar happened, the bank and the manufacturer might work out a new striking price for the warrants.

That leads us to the tweet. On August 7th, 2018, Musk famously tweeted that he was “considering taking Tesla private at $420. Funding secured.”  Tesla’s top financial officer, head of communications, and chief legal wrote an email ascribed to Musk later that day, which was published on the company’s blog and explained Musk’s announcement. “[i]nvestor support is confirmed. Only reason why this is not certain is that it’s contingent on a shareholder vote.” Tesla’s investor relations head also told some press that there was a “firm offer.”

But, as everyone discovered after the Securities and Exchange Commission sued Musk and Tesla over the announcement, none of that was true. Musk spoke briefly with Saudi Arabia’s Public Investment Fund, but that was the end of it.

JPMorgan recognised the consequent volatility in Tesla’s stock price and decided to change the strike price of its warrants before the truth was revealed. It dropped the price to $424.66 and informed Tesla of the change. According to the lawsuit, Tesla agreed to a conference call on August 24th but cancelled at the last minute.

Tesla and Musk revealed the same day that their attempt to take Tesla private had failed.

As a result, JPMorgan decided to change the strike price of the warrants once more. It recalculated based on the reaction to Tesla and Musk’s decision to reverse course, and came up with a strike price of $484.35.

According to JPMorgan’s lawsuit, Tesla “protested that no adjustment should be necessary at all because it had so quickly abandoned its going-private plans,”  The bank provided Tesla with its estimates and “held several conference calls” to explain them, according to the bank. Tesla “did not provide any specific objection” to those explanations, according to the bank. Tesla then stopped communicating with JPMorgan for six months, according to JPMorgan.

In February 2019, Tesla’s lawyers wrote to JPMorgan, stating that the bank’s revisions were “unreasonably swift and represented an opportunistic attempt to take advantage of changes in volatility in Tesla’s stock.”  JPMorgan responded by “rejecting all of [Tesla’s] charges,” but the two parties didn’t communicate for the next two years. JPMorgan adjusted the price to $96.87 in August 2020 to account for Tesla’s stock split, but Tesla claims it never reacted.

According to the lawsuit, by the time the expiration dates came around this year, Tesla’s shares had already gone on an extraordinary run, and JPMorgan’s warrants were “much in the money.” Tesla “renewed its objections to the Adjustments” when the bank contacted them about cashing out. JPMorgan did settle some shares with Tesla — the bank did not indicate how many — but the bank alleges Tesla “refused to settle in full,” triggering a “early termination” condition.

Tesla owes JPMorgan 228,775 shares when the contract was cancelled, according to JPMorgan, and those shares are worth $162,216,628.81 based on Tesla’s stock price at the time. (To make matters worse, JPMorgan had hedged its Tesla warrant arrangement by keeping a short position in Tesla’s stock.) When Tesla failed to settle the remaining shares, the bank was forced to cover the hedged bet by purchasing the equivalent number of shares on the open market.)

Musk was still tweeting shortly after the suit was filed on Monday, in a thread he started on Sunday in response to a tweet on taxes from Senator Bernie Sanders (I-VT). Musk wrote, “I like to dig my grave real deep,”

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An electric vehicle start-up Canoo is on Apple’s radar

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An electric vehicle start-up Canoo is on Apple's radar

An electric vehicle start-up Canoo is on Apple’s radar

Despite recent setbacks for the Apple Car project, there may be a great opportunity to get things back on track. The Cupertino-based computer giant may be interested in acquiring EV company Canoo, which is currently struggling to remain afloat financially. But Apple must purchase the company as quickly as possible in order for it to be of significant use.

Despite its short lifespan, Canoo, a startup that was founded five years ago, is having difficulty finding traction. According to the electric car maker’s earnings call last week, it may not have enough money to continue functioning. A new influx of finance, however, does not guarantee that Canoo will be able to create as many vehicles in 2022 as it had previously anticipated.

According to Canoo’s most recent earnings report, the company is unsure of how long it will be able to continue operating.

There is serious question as to the company’s capacity to continue as a going concern as of the date of this release because of the timing of the investment we disclosed and the FASB accounting regulation for 2014.

In 2020, Apple was in negotiations with Canoo about acquiring the company. Sources familiar with the subject say Apple would not be interested in purchasing the technology of a faltering startup at this time. However, the company’s hardware and software engineers, as well as its developers, may be another story.

Cupertino has created the technology and people it need, at least in part, by purchasing other similar firms during the whole Apple Car initiative. When Apple acquired Drive.ai in 2019, it gained access to the company’s team of autonomous driving experts.

According to Bloomberg’s Mark Gurman, it’s doubtful that Apple will buy Canoo for the company’s technology. A project that has lost some of its best people may benefit from engineers and developers from the troubled firm.With it, it has brought in others, including elite talent from Ford, Rivian, Tesla BMW, Mercedes and Volvo. Despite this, there’s always room for improvement.

Could potentially be instrumental in brokering a contract between Apple and Canoo through one of its recent recruits An Apple Car executive, Ulrich Kranz was also a co-founder of Canoo and the company’s previous CEO. Apple has hired a number of former Canoo employees as engineers and other staff members.

Many of Canoo’s top players have already gone, as Gurman points out. Cupertino may have to move swiftly if it hopes to get the most out of a purchase like this.

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Bank of America Hours: Working Hours & Holidays

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Bank of america

There are over 66 million customers of Bank of America, which is one of the world’s major financial institutions. As one of the greatest national banks in 2022, they provide a wide variety of services at their various locations. 

The Bank of America Corporation, also known as Bank of America and sometimes written as BofA or BoA, is an American multinational investment bank and financial services holding company with its headquarters in Charlotte, North Carolina. The bank was started in San Francisco. In 1998, NationsBank of Charlotte bought it and changed it into what it is now. After JPMorgan Chase, it is the second-largest bank in the United States and the eighth-largest bank in the world. Bank of America is one of the Big Four banks in the United States. It handles about 10.73% of all bank deposits in the United States, which puts it in direct competition with JPMorgan Chase, Citigroup, and Wells Fargo. Commercial banking, wealth management, and investment banking are its most important financial services.

How many days in a week is Bank of America open?

Monday through Saturday, the majority of Bank of America branches are open six days a week. Sundays are the only days when you can conduct financial transactions at an ATM, online, or through a mobile app.

Bank of America Hours on Normal Days

Bank of America hours vary per branch, so before you go, find out what hours your local Bank of America is open online. During the epidemic, many Bank of America locations are working on restricted hours to allow for additional cleaning, so check before heading out. It was previously open Monday through Friday from 9 a.m. to 5 or 6 p.m. Some branches open at 10 a.m. and close at 4 p.m. Some branches are closed on Saturdays, but most are open from 9 a.m. to 2 p.m. ATMs are open 24/7.

Bank of America Hours for Holidays

Bank of America Holiday Schedule 2022
New Year’s Day — Jan. 1Closed
Martin Luther King, Jr. Day — Jan. 17Closed
Valentine’s Day — Feb. 14Open
Presidents’ Day — Feb. 21Closed
St. Patrick’s Day — March 17Open
Good Friday — Apr. 15Open
Easter Sunday — Apr. 17Closed
Easter Monday — Apr. 18Open
Memorial Day — May 30Closed
Independence Day — July 4Closed
Labor Day — Sept. 5Closed
Columbus Day — Oct. 10Closed
Halloween — Oct. 31Closed
Veterans Day — Nov. 11Closed
Thanksgiving Day — Nov. 24Closed
Black Friday — Nov. 25Open
Christmas Eve (daytime) — Dec. 24Open (Most branches open 9 a.m. to 2 p.m.)
Christmas Day — Dec. 25Closed

Bank of America Contact Information

Call these numbers for customer care assistance with checking and savings account issues, such as general account information, reporting a lost or stolen debit card, and creating an account:

  • For US callers, dial 800-432-1000.
  • For international calls, dial 1-315-724-4022.
  • For Spanish-speaking callers, dial 800-688-6086.
  • Customer care representatives are available from 8 a.m. to 11 p.m. EST Monday through Friday. Weekend hours are from 8 a.m. to 8 p.m. EST.

You can also contact Bank of America via Twitter @BofA Help or by messaging them on Facebook.

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Money

Trump believes Elon Musk will back out of his Twitter deal

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Trump believes Elon Musk will back out of his Twitter deal

Trump believes Elon Musk will back out of his Twitter deal

Elon Musk has spoken in public recently to declare that the purchase of Twitter has not yet been finalised. He was worried about the sheer amount of bots and false accounts he would have to remove from the network. Due to the rapid rate at which phoney accounts are generated on a daily basis.

In fact, with his new platform, ‘Truth Social,’ the former president has run into this very issue. It has been described as a “bot conservative ghost town” by a number of writers and investigators. 

Donald Trump came to Truth Social to discuss Elon Musk’s refusal to purchase Twitter using his comments. His extensive essay explained why he thinks this would happen, but he also used the opportunity to promote his own platform.

Trump explained: “There is no way Elon Musk is going to buy Twitter at such a ridiculous price, especially since realizing it is a company largely based on BOTS or Spam Accounts. ake anyone? By the time you get rid of them, if that can even be done, what do you have? Not much? Just my opinion, but Truth Social is MUCH better than Twitter and is absolutely exploding, incredible engagement.”

Elon can still back out of the deal, but he’ll pay a high price for it in the long run. Musk has been doing his own investigation of Twitter’s bots, and he has asked other Twitter users to do the same. According to him, there are at least 5% of all users that are either automated or phoney.

However, as he stated, Twitter’s legal team informed him that he had breached an NDA by disclosing the technique he used to detect fraudulent accounts. Incredibly, Musk couldn’t believe what he was seeing. Even more compelling evidence why Twitter is a bad investment.

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