'Elon and I Hugged It Out': JPMorgan CEO Jamie Dimon Says He Reconciled With Elon Musk After Lawsuits Dimon spoke at the World Economic Forum's annual event in Davos, Switzerland.
By Sherin Shibu Edited by Melissa Malamut
Key Takeaways
- JPMorgan Chase CEO Jamie Dimon said that he and Elon Musk have repaired their relationship after years of litigation.
- Tesla and JPMorgan had a dispute over a stock warrant deal.
- Dimon also said the U.S. stock market was "inflated" and tariffs might be inflationary, but good for national security.
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, he and I had a nice, long chat," Dimon said at the World Economic Forum's annual event in Davos, Switzerland. "We've settled some of our differences."
Dimon told CNBC that "Elon and I have hugged it out," with the timing of the reconciliation 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 agreement.
Dimon and Musk's relationship has been fraught with litigation. The issue stemmed from Musk's 2018 tweet saying he could take Tesla private at a share price of $420 with "funding secured," and a 2014 contract that allowed Tesla to sell stock warrants to JPMorgan so the bank could buy shares of the company at a set "strike" price. If Tesla's stock traded above the strike price, Tesla would owe JPMorgan money in the form of shares or cash.
JPMorgan accused Tesla of breaking its contract, and Tesla countersued in January 2022.
Jamie Dimon, CEO of JPMorgan. Photographer: Kent Nishimura/Bloomberg via Getty Images
After announcing at Davos that the two have repaired their relationship, Dimon then praised Musk, calling him "our Einstein" and wishing him "the best" in his efforts to lead the new Department of Government Efficiency, which President Donald Trump created by executive order on Monday. The new department is tasked with downsizing the U.S. government and cutting government spending.
"I think it is completely rational for someone to look at our government and say it's been ineffective," Dimon told CNBC.
Now, at the World Economic Forum, Dimon says that he would "like to be helpful" to Musk and his companies.
Dimon Calls U.S. Stock Market 'Inflated'
Dimon also told CNBC that U.S. stock market prices were "kind of inflated" and were "in the top 10% or 15%" of their historical value.
"You need really good outcomes to justify those prices," Dimon said.
U.S. stocks were among the world's most high-performing stocks last year, caused by a strong U.S. economy, a strong labor market, and robust consumer spending, according to Investopedia.
JPMorgan is the biggest American bank, with $3.3 trillion in assets.
Related: JPMorgan Will Reportedly Follow Amazon, Walmart With Strict Return-to-Office Policy
Dimon on Tariffs: 'Get Over It'
Dimon also said that the tariffs Trump could impose on foreign countries could have pros that outweigh the cons — mainly that they could promote American interests at the bargaining table with other countries.
Global fund managers have expressed concerns that tariffs could lead to higher inflation. But Dimon says that even if inflation does rise, the national security benefits outweigh it.
"If it's a little inflationary, but it's good for national security, so be it," Dimon told CNBC. "I mean, get over it. National security trumps a little bit more inflation."
