Tesla is basically taking on a loan in form of a convertible notes.
probably much smarter to distribute their lender among multiple entities than one giant bank that would have leverage on them.
Also, it looks like Tesla would use a portion of the money to inflate their share prices via a small buyback. The after market trading so far make this strategy look successful.
So at the end of a day: Tesla is raising capital without diluting their shareholders and reducing their share values and giving up much control.
Also the maturity date of 5 years is rather interesting. I wonder if it correlates with their internal projections and their ability to pay that money back by then.
Also, it looks like Tesla would use a portion of the money to inflate their share prices via a small buyback. The after market trading so far make this strategy look successful.
So at the end of a day: Tesla is raising capital without diluting their shareholders and reducing their share values and giving up much control. Also the maturity date of 5 years is rather interesting. I wonder if it correlates with their internal projections and their ability to pay that money back by then.