Did Musk and Dimon, Once 'Archrivals' Who Even Went to Lawsuits, Reconcile?

The long-standing feud between Elon Musk, CEO of Tesla, and Jamie Dimon, Chairman of JP Morgan Chase, which once escalated to a lawsuit, has recently shown signs of reconciliation, the Wall Street Journal (WSJ) reported on the 2nd (local time).

According to the report, Musk unexpectedly appeared as a speaker at a conference hosted by JP Morgan last March. At the conference, Dimon and Musk discussed a variety of topics ranging from Israel to artificial intelligence (AI) and U.S. politics. Sources attending the event said that Musk showed respect for Dimon's views, and the relationship between the two appeared cordial on stage.

In particular, after the event, the two held a separate conversation for over an hour in Dimon's suite. Musk attended the event with his son, X. Additionally, sources explained that Dimon decided JP Morgan could resume dealings with Musk after the event. WSJ stated, "The two are moving toward a new beginning," adding, "The door is now open for JP Morgan and the Musk empire to work together going forward."

Elon Musk, CEO of Tesla [Image source=Reuters Yonhap News]

The long-standing discord between Musk, one of the world's wealthiest individuals, and Dimon, known as the "Emperor of Wall Street," is well known. Their public clashes intensified in 2016 when JP Morgan rejected Tesla's request to acquire its electric vehicle leasing division, citing uncertainty over battery valuation.

WSJ reported that at the time, Musk called JP Morgan's head of consumer finance, yelling that he would halt the deal and ended the call with an expletive starting with the letter F. Dimon did not remain silent either; he called Musk angrily, stating that JP Morgan would not back down.

Since then, Musk has closely collaborated with JP Morgan's competitors. According to Dealogic, Goldman Sachs has earned approximately $90 million in fees from Tesla and SpaceX since 2010. In contrast, JP Morgan sided against Musk when he acquired Twitter. It is reported that JP Morgan has not been involved in any proposals or deals from Tesla since 2016.

This discord eventually escalated into a lawsuit. In 2021, JP Morgan filed a $162 million lawsuit against Tesla, claiming that Tesla violated a warrant agreement signed in 2014 and failed to pay the corresponding amount. In response, Musk told WSJ, "If JP Morgan does not withdraw the lawsuit, I will give them a one-star review on Yelp." He also testified in court in January 2023 that "JP Morgan hates Tesla."

Jamie Dimon, Chairman of JPMorgan Chase [Photo by Reuters]

However, WSJ analyzed that signs of thawing had gradually appeared since last year, ahead of the March conference. In November last year, at the New York Times (NYT) DealBook conference, Dimon responded to a question about Musk by saying, "He is definitely an outstanding person and has contributed to humanity." Musk also posted on X, "Dimon speaks well," after Dimon made some positive remarks about former President Donald Trump's stance in January this year.

WSJ noted, "Just a year ago, the possibility of JP Morgan and Musk finding a way to cooperate seemed slim," adding, "Although significant obstacles remain, including the lawsuit, the progress in their relationship is noteworthy."

Musk, who leads Tesla and SpaceX, is a coveted client for investment banks like JP Morgan. Musk can also leverage JP Morgan's abundant capital and network, the largest bank in the U.S. WSJ evaluated that this win-win relationship is why their feud was unusual on Wall Street and why both sides can turn toward reconciliation.

However, WSJ added that the lawsuit filed by JP Morgan in 2021 is still ongoing, and it is uncertain whether the recent improvement in relations between Dimon and Musk will have any impact on the lawsuit.

This content was produced with the assistance of AI translation services.