Saturday, February 8, 2025

JPMorgan CEO Jamie Dimon: ‘I Hugged It Out’ With Elon Musk

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JPMorgan Chase CEO Jamie Dimon says he now not has any onerous emotions towards Elon Musk after lawsuits between the financial institution and Musk-led Tesla beforehand interfered with their relationship.

“He got here to one in all our conferences, he and I had a pleasant, lengthy chat,” Dimon mentioned on the World Financial Discussion board’s annual occasion in Davos, Switzerland. “We have settled a few of our variations.”

Dimon instructed CNBC that “Elon and I’ve hugged it out,” with the timing of the reconciliation unclear. JPMorgan sued Tesla in 2021 over a dispute over a inventory warrant deal. Each firms dropped their claims in November after reaching a settlement settlement.

Associated: JPMorgan Shuts Down Inside Message Board Feedback After Workers React to Return-to-Workplace Mandate

Dimon and Musk’s relationship has been fraught with litigation. The difficulty stemmed from Musk’s 2018 tweet saying he might take Tesla non-public at a share worth of $420 with “funding secured,” and a 2014 contract that allowed Tesla to promote inventory warrants to JPMorgan so the financial institution might purchase shares of the corporate at a set “strike” worth. If Tesla’s inventory traded above the strike worth, Tesla would owe JPMorgan cash within the type of shares or money.

JPMorgan accused Tesla of breaking its contract, and Tesla countersued in January 2022.

Jamie Dimon, CEO of JPMorgan. Photographer: Kent Nishimura/Bloomberg through Getty Pictures

After saying at Davos that the 2 have repaired their relationship, Dimon then praised Musk, calling him “our Einstein” and wishing him “one of the best” in his efforts to guide the brand new Division of Authorities Effectivity, which President Donald Trump created by executive order on Monday. The brand new division is tasked with downsizing the U.S. authorities and chopping authorities spending.

“I believe it’s utterly rational for somebody to have a look at our authorities and say it has been ineffective,” Dimon instructed CNBC.

Now, on the World Financial Discussion board, Dimon says that he would “wish to be useful” to Musk and his firms.

Dimon Calls U.S. Inventory Market ‘Inflated’

Dimon additionally instructed CNBC that U.S. inventory market costs have been “form of inflated” and have been “within the high 10% or 15%” of their historic worth.

“You want actually good outcomes to justify these costs,” Dimon mentioned.

U.S. shares have been among the many world’s most high-performing shares final yr, attributable to a powerful U.S. financial system, a powerful labor market, and sturdy client spending, in line with Investopedia.

JPMorgan is the largest American financial institution, with $3.3 trillion in belongings.

Associated: JPMorgan Will Reportedly Comply with Amazon, Walmart With Strict Return-to-Workplace Coverage

Dimon on Tariffs: ‘Get Over It’

Dimon additionally mentioned that the tariffs Trump might impose on overseas nations might have execs that outweigh the cons — primarily that they might promote American pursuits on the bargaining desk with different nations.

International fund managers have expressed concerns that tariffs might result in greater inflation. However Dimon says that even when inflation does rise, the nationwide safety advantages outweigh it.

“If it is a little bit inflationary, however it’s good for nationwide safety, so be it,” Dimon instructed CNBC. “I imply, recover from it. Nationwide safety trumps a little bit bit extra inflation.”


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