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> They can cover it with cash, issuing stock or a combination of the two. They're convertible notes with a fixed conversion rate, Tesla doesn't get to decide o
by jonknee 8y ago
> They can cover it with cash, issuing stock or a combination of the two.
They're convertible notes with a fixed conversion rate, Tesla doesn't get to decide on what the noteholder wants. If the stock price isn't high enough whoever is holding the notes will demand cash (cash that Tesla doesn't have).
- alonmower 8y agoI think the above comment was claiming that they could issue stock to generate the cash that they'd use to pay back the convertible notes with
- jonknee 8y agoOn the second quarter call this year, Elon Musk stated: > “We’ll not be raising any equity at any point... I have no expectation of doing so; do not plan to do so.” Issuing new shares would be a disaster. Far more likely is they come up with a way to roll the debt forward.