Posted on 05/16/2018 8:21:06 AM PDT by Oldeconomybuyer
NEW YORK - The investment firm founded and chaired by billionaire George Soros took a stake in Tesla Inc bonds during the first three months of the year, giving the electric carmaker run by Elon Musk a prominent supporter.
Soros Fund Management LLC took a $35 million stake in the convertible bonds of Tesla, which are due in March 2019, according to filings with the U.S. Securities and Exchange Commission.
At the end of March, the Tesla bonds came under severe selling pressure as the luxury automaker faced concerns about its ability to produce its cheaper Model 3 sedan. A crash involving Tesla’s autopilot technology and concerns about the company’s ability to raise new capital also took a toll.
On Monday, Musk told employees the company was undergoing a “thorough reorganization.”
Convertibles are hybrid securities, either bonds or preferred stock, that can be exchanged for a predetermined number of common shares. That effectively lets an investor participate in stock-price changes, but with the yield and greater security of a fixed-income instrument.
(Excerpt) Read more at reuters.com ...
Looks like I need to sell my house in Reno sooner rather than later.
When will Soros order Governments to order citizens to buy one ,LOL
Not just bonds...but CONVERTIBLE bonds. Soros is evil but he’s not stupid.
According to current news reports, that $35 million investment will last approximately 90 days at Tesla's cash burn rate.
Sorry, my bad. At Tesla's current cash burn rate that $35 million investment will only last about 45 days.
Two anti-Americans joining forces.
Indeed they are losing $6,000 a minute he must have other plans?.
article unclear whether this was a new issue or an old issue purchased on the open market ... if old,then purchased just to prop up tesla’s bonds, if new, then represents new cash to tesla ... i suspect the bonds were old ones purchased on the open market ...
Not to quibble with you, but according to the April 30, 2018 edition of Bloomberg, they are burning through $7,430 of cash per minute.
Ping.
LOL.
Sorry. Musk is a snake oil salesmen.
Soros is a snake.
Watching both blow up is going to be enjoyable. Tesla is burning cash like a dumpster fire in a gunpowder plant. Soros has a lot cash to burn.
Whoop-dee-doo. $35 million will get you a handful of Roadsters. This is NOT a major purchase, certainly not something that Soros can use to have a say in Musk’s affairs.
Unlike most of us who were born here, Musk chose to come here, become a US citizen, and start multiple American companies that employ thousands of Americans, many of them military veterans. SpaceX has returned the US into being the dominant space faring nation.
You can call it cash burning if you want, but the money is being invested in growing production capacity.
Must be expecting a new infusion of taxpayer money.
I stand corrected good job.
I hope he gets treated like Obama treated GM bondholders.
He must need a tax deduction...............
Tesla lost 700 million in just three months prompting a Musk melt down on the Quarterly Conference call a couple weeks back. I’m not sure Soros stake amounts to much in the big picture.
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