JPMorgan CEO Jamie Dimon: ‘I Hugged It Out’ With Elon Musk | Entrepreneur
JPMorgan Chase CEO Jamie Dimon says he no longer has any hard feelings toward Elon Musk after lawsuits between the bank and Musk-led Tesla previously interfered with their relationship.
“He came to one of our conferences and we had a nice, long conversation,” Dimon said at the World Economic Forum’s annual event in Davos, Switzerland. “We have resolved some of our differences.”
Dimon told CNBC that “Elon and I have embraced,” but the timeline for the reconciliation is unclear. JPMorgan sued Tesla in 2021 over a dispute over a stock warrant deal. Both companies dropped their claims in November after reaching a settlement.
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The relationship between Dimon and Musk has been complicated by litigation. The issue stemmed from Musk’s 2018 tweet saying he could take Tesla private at $420 with “funding secured,” as well as a 2014 contract that allowed Tesla to sell stock warrants to JPMorgan so the bank could buy shares of a company at a set price. “strike” price. If Tesla stock had traded above the strike price, Tesla would have owed JPMorgan money in the form of stock or cash.
JPMorgan accused Tesla of breach of contract, and Tesla countersued in January 2022.
Jamie Dimon, CEO of JPMorgan. Photographer: Kent Nishimura/Bloomberg via Getty Images
Announcing in Davos that the two had mended their relationship, Dimon then praised Musk, calling him “our Einstein” and wishing him “all the best” in his efforts to lead the new Department of Government Effectiveness that President Donald Trump created by executive order. on Monday. The new department is tasked with downsizing the U.S. government and reducing government spending.
“I think it’s perfectly reasonable for someone to look at our government and say it’s ineffective,” Dimon told CNBC.
Now, at the World Economic Forum, Dimon says he “would like to be of service” to Musk and his companies.
Dimon called the US stock market “bloated”
Dimon also told CNBC that U.S. stock market prices were “somewhat overvalued” and in the “top 10-15%” of their historical values.
“It takes really good results to justify those prices,” Dimon said.
U.S. stocks were among the best-performing stocks in the world last year, driven by a strong U.S. economy, strong job market and strong consumer spending, according to Investopedia.
JPMorgan is the largest American bank with assets of $3.3 trillion.
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Dimon on tariffs: ‘Deal with it’
Dimon also said that the tariffs Trump could impose on foreign countries could have benefits that outweigh the negatives – mainly, they could help advance American interests at the negotiating table with other countries.
Global fund managers have expressed concern that the tariffs could lead to higher inflation. But Dimon says that even if inflation does rise, the national security benefits will outweigh it.
“If it’s a little inflationary but good for national security, so be it,” Dimon told CNBC. “I mean, deal with it. National security trumps slightly higher inflation.”