Elon Musk joked about giving JPMorgan a one-star review on Yelp, but it seems that the Tesla CEO's fans did the job for him.
This occurred after JPMorgan filed a lawsuit against the world's top billionaire for a breach of contract over stock warrants.
Elon Musk vs. JPMorgan
For those who are not familiar with the feud between the Tesla CEO Elon Musk and JPMorgan, Axios stated that JPMorgan Chase filed a lawsuit against the electric vehicle company for breach of contract over stock warrants. This happened after Musk's 2018 tweet indicating he would take his company private at $420.
Shareholders could either to sell at 420 or hold shares & go private— Elon Musk (@elonmusk) August 7, 2018
Futurism reported that JPMorgan took a chance on a deal that never materialized, and Tesla now owes the bank $162.2 million.
In relation to this, the warrants' value significantly declined after Musk tweeted that Tesla had "financing secured."
To provide further definition, Investopedia stated that a stock warrant is a contract that provides the right to buy a company's shares at a certain price and on a certain date. Additionally, an investor receives a stock warrant straight from the corporation.
In two important aspects, a stock warrant varies from an option: the business issues its warrants, and the corporation issues new shares for the transaction. Moreover, if a firm wants to generate extra funds from a stock offering, it can also issue stock warrants. However, when a corporation offers shares for $100 but a warrant is just $10, more investors will exercise their warrant rights.
These warrants represent a potential capital source.
With that being stated, JPMorgan wanted the due shares or cash, but Tesla has blatantly ignored its clear contractual duty to pay the bank in full.
In addition, JPMorgan is bringing this lawsuit to recover its payment as well as seeking to recover over $162 million immediately due and payable.
Axios furthered that JPMorgan spokesman Tasha Pelio said the bank has provided Tesla multiple chances to meet its contractual commitments, and it is unfortunate that it resorted to a lawsuit.
On the other hand, it seems that Musk's fans are not happy with JPMorgan, and they have turned to the company's Yelp page to express their dissatisfaction.
Elon Musk Fans Rates JPMorgan With 1-Star Reviews On Yelp
Musk joked about giving JPMorgan a one-star rating on Yelp after the bank sued him over his tweet.
Business Insider reported that hundreds of unfavorable reviews were posted on JPMorgan's Yelp page on Tuesday morning, in which some of the comments are the following.
- "JP Morgan Sucks from a Tesla owner."
- "That's what you get for playing with Elon."
- "They got my order wrong. I wanted curly fries."
- "One star only for their frivolous lawsuits against their business partners, particularly against Tesla."
- "I'm here for Tesla. Give u one star for suing the company."
The situation deteriorated to the point that Yelp issued an "Unusual Activity Alert," which is sent whenever the website suspected an ongoing review bombing, per Futuristic.
As of writing, Yelp has disabled the submission of any new reviews for JPMorgan.
In the Yelp trust and safety report, the company explained that the purpose of Yelp is to connect customers with exceptional local businesses by providing them with trustworthy and relevant information.
"Consumer trust is our top priority, which is why we take significant measures to maintain the integrity and quality of the content on our site. Yelp invests in both technology and human moderation to mitigate misinformation on our platform," the report furthered.
Musk has been silent on the review bombing, but he did reply to a tweet parodying a one-star Yelp review of JPMorgan.
🔥🤣— Elon Musk (@elonmusk) November 23, 2021