NW-Bound
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Jul 3, 2008
- Messages
- 35,712
If Tesla stock doesn't get to $359.87/sh by 12/1, high chances then that the stock plummets significantly as Tesla would then have to use cash to redeem the convertible debt that comes due in March. Since Tesla had $2.2 billion in cash at the end of June, their burn rate for the next 3 quarters and then having to come up with the $920 million for the convertible stock redemption would really put Tesla in a bind.
Yes, Tesla has that $920 million convertible bond at $359.9, coming due on Feb 2019. A bit further out is $1.38 billion convertible bond at the same price, due on Feb 2021. Stock is now at $289.
And the rumor today is that the Model 3 production falls again. Aye, aye, aye... It's interesting to watch, even though I have no money in this game.
PS. Another debt coming due even sooner this November 1st is a note inherited from SolarCity after the merger. It is also convertible, but at a stock price of $560.64. Aye, aye, aye... Obviously, investors were very optimistic in the those days.
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