CEO of JPMorgan Chase Jamie Dimon says he no longer has 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 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 it,” with the timing of the reconciliation unclear. JPMorgan sued Tesla in 2021 on a dispute over a share guarantee agreement. Both companies gave up their claims in November after reaching a settlement agreement.
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Dimon and Musk's relationship has been fraught with litigation. The issue stemmed from Musk's Tweet 2018 saying he could take Tesla private at a share price of $420 with “secured funds” and a 2014 contract that allowed Tesla to sell stock warrants to JPMorgan so the bank could buy shares of the company at a certain “hit” price. If Tesla's stock traded above the strike price, Tesla would owe JPMorgan money in the form of stock or cash.
JPMorgan accused Tesla of breaching its contract, and Tesla countersued in January 2022.
Jamie Dimon, CEO of JPMorgan. Photo: Kent Nishimura/Bloomberg via Getty Images
After announcing in 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 group. Department of Government Efficiencythat President Donald Trump created by executive order on monday. The new department is tasked with shrinking the US government and cutting government spending.
“I think it's perfectly 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 he would like to be useful to Musk and his companies.
Dimon calls US stock market 'inflated'
Dimon also told CNBC that US stock market prices were “somewhat inflated” and were “in the top 10% or 15%” of their historical value.
“You need really good results to justify those prices,” Dimon said.
According to Investopedia.
JPMorgan is the largest American bank, with 3.3 trillion dollars in assets.
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Dimon on fees: 'Get over it'
Dimon also said that tariffs that Trump could impose on foreign countries could have advantages that outweigh the disadvantages — mainly that they could promote American interests at the negotiating table with other countries.
Global fund managers have expressed concerns that tariffs could lead to higher inflation. But Dimon says that even if inflation rises, 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 inflation a little more.”