Nov 29 (Reuters) - U.S. lender JPMorgan Chase ( JPM )

agreed on Friday to drop its lawsuit filed against electric

vehicle maker Tesla linked to stock warrant

transactions.

The move to drop the lawsuit was announced in a one-page

court filing by both companies in a Manhattan court, where they

said they will drop their claims against each other.

Neither company disclosed settlement terms.

JPMorgan ( JPM ) and Tesla did not immediately respond to Reuters'

requests for comment.

JPMorgan ( JPM ) sued Tesla in November 2021, seeking $162.2

million, alleging that Tesla breached a 2014 contract related to

stock warrants it sold to the bank, and which the bank believes

became more valuable because of a 2018 tweet by Tesla CEO Elon

Musk.

Warrants give the holder the right to buy a company's stock

at a set "strike" price and date.

Musk's Aug. 7, 2018 tweet that he might take Tesla private

at $420 per share and had "funding secured," and his subsequent

announcement 17 days later that he was abandoning the plan,

created significant volatility in the share price, the bank

said. On both occasions, JPMorgan ( JPM ) adjusted the strike price "to

maintain the same fair market value" as prior to the tweets, the

bank said.

JPMorgan ( JPM ) said it was obligated to reprice the warrants after

Musk's tweet, and that a subsequent 10-fold increase in Tesla's

stock price required that company to make payments, which it has

not done.

Tesla countersued JPMorgan ( JPM ) in January 2023, accusing the

bank of seeking a "windfall" when it repriced the warrants.

Musk, who bought Twitter for $44 billion in 2022, agreed in

a 2018 deal with the U.S. Securities and Exchange Commission to

get pre-approval from a Tesla lawyer for some tweets.

(Reporting by Gnaneshwar Rajan in Bengaluru; Editing by

Muralikumar Anantharaman)