JPM bought the warrants from Tesla in 2014 to help the automaker mitigate risk that its stock would be diluted by issuance of convertible notes, and to make certain federal income tax deductions. The bank claims it had the discretion to adjust the strike price based on factors including the volatility of Tesla’s stock -- and made two modifications in August 2018 -- one after Musk tweeted that he had secured funding to take Tesla private, and another when the chief executive officer abandoned the effort weeks later.