Tesla CEO Elon Musk and JPMorgan CEO Jamie Dimon haven’t been on good terms in recent years, but that appears to be changing, according to Wall Street Journal.
Any improvement in their relationship could pave the way for the largest bank by market capitalization to do more business with billionaire Musk or his group of companies, which also includes SpaceX and social media platform X. In the meantime, Musk could tap into JPMorgan’s massive stockpile. capital and services.
But around 2016, the clash between business giants became very violent. That’s when JPMorgan rejected Musk’s request that the bank sign a lease for Tesla’s electric vehicles, citing uncertainty about how to price the batteries. WSJ said.
Musk called the bank, yelled at the then head of consumer banking and threatened to shut down Tesla’s commercial banking business, sources said. WSJ, saying Musk ended his rant with “F— you.” This angered Dimon, who told Musk that JPMorgan would not be bullied, the report said.
A JPMorgan spokesman declined to comment. Luck. Tesla did not immediately respond to a request for comment.
The relationship deteriorated: JPMorgan sued Tesla in 2021, claiming it was owed money for a deal the bank helped arrange in 2014. Tesla countersued, and litigation is still ongoing.
But WSJ pointed to signs of a thaw: In November, Dimon called Musk a “brilliant man” who is making “incredible contributions to humanity.” In January, Musk praises Dimon on Twitter after the bank’s chief said Donald Trump was right about the economy, immigration and China.
And in March, Musk showed up at a JPMorgan technology event at a Montana resort and talked with Dimon on stage for an hour, then went to Dimon’s suite, where they talked for another hour. After this, sources said WSJ that Dimon decided JPMorgan might try doing business with Musk again.
Meanwhile, Musk is looking for new allies on Wall Street and the capital markets.
He is trying to win shareholder support for his historic $47 billion compensation package from Tesla, which has drawn sharp criticism.
Elsewhere, Musk’s artificial intelligence company xAI is seeking investors and last month raised $6 billion in a venture round, valuing the less than a year old startup at $18 billion.