Tesla has a billion dollar obligation coming due, and it could clear out about 33% of the organization’s money if the stock cost doesn’t move forward.
About $920 million in convertible senior notes expires on March 1 at a conversion cost of $359.87 per share. Be that as it may, Tesla’s stock hasn’t traded above $359 for weeks. In the event that the shares are about $359.87, Tesla’s obligation changes over into Tesla shares. If not, Tesla should pay the obligation in real money.
Tesla reported cash and cash equivalents of $3.37 billion toward the finish of its September quarter. The organization keeps on uncovering strain to look after benefit, and reported Friday it would cut 7 percent of its full-time workforce.
Shares fell in excess of 10 percent Friday following the declaration to trade around $310 per share.
Musk said amid the organization’s second from last quarter profit call that Tesla intends to respect the original maturation date.
“The current operating plan is to pay off our debts and not to refinance them but to pay them off and reduce the debt load and overall leverage of the company,” Musk said at the time.
Tesla had previously notified bondholders they could be paid out in a 50-50 mix of money and common stock, as indicated by Bloomberg. In any case, if the stock doesn’t recoup above $359 — a gain of 16 percent from Friday’s intraday cost — by the conversion date, Tesla won’t have a decision.