how the fuck is Tesla valued the way it is? Seriously, its a cluster fuck waiting to implode.
(Reuters) - Tesla Inc has paid off a $920 million convertible bond obligation in cash, a company spokesperson said on Friday.
The bond, which matured on Friday, had a $359.87 conversion price, but the electric carmaker’s shares closed down 8 percent at $294.79, forcing the company to settle its largest ever debt payment in cash.
Convertible issues give bondholders the right to trade their debt for equity after shares rise over a certain price, allowing holders to benefit from a rising share price, while also offering bond-like protection if it falls.
Friday’s payout will make a significant dent in the $3.7 billion in cash Tesla had on hand at the end of 2018.