JPMorgan Chase & Co. has decided to drop its lawsuit against Tesla Inc., which sought $162 million related to stock warrant transactions.

The announcement was made through a brief court filing, indicating that both parties have agreed to dismiss their claims without the option to refile.

A spokesperson for JPMorgan stated that the two companies will enter into a new commercial relationship, resolving outstanding disputes.

The lawsuit, initiated in 2021, stemmed from a 2014 agreement where Tesla was obligated to compensate JPMorgan with shares or cash if its stock traded above a specified price.

This arrangement was intended to help Tesla manage the risk of stock dilution from convertible notes and to secure certain federal income tax deductions.