George Soros buys US$35 million in Tesla bonds

George Soros buys US$35 million in Tesla bonds

Billionaire George Soros’ investment firm has just bought into Tesla bonds during the first quarter of 2018, giving the electric automaker a prominent supporter and backer. A filing by the American Securities and Exchange Commission (SEC) showed Soros Fund Management LLC taking a US$35 million stake (RM139 million) in the convertible bonds of Tesla, which are due in March 2019.

Convertible bonds are hybrid securities – either bonds or preferred stock – that can be exchanged for a predetermined number of common shares. This allows an investor to participate in stock-price changes, but with the yield and greater security of a fixed-income instrument. Soros, 87, previously held some Tesla stock, but sold off his stake last year.

Tesla, which is run by billionaire Elon Musk, has been under pressure from investors to prove the company can solve production problems, stem senior staff departures and resolve questions about crashes involving its Autopilot feature.

By the end of March, Tesla posted a record loss of US$784.6 million, which is its highest ever quarterly loss. The company then came under severe selling pressure as the luxury automaker faced various concerns about its ability to produce its more affordable Model 3 sedan, and a few high profile crashes involving the Autopilot system. Musk said the company was undergoing a “thorough reorganisation,” which are likely to address these concerns.

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Matthew H Tong

An ardent believer that fun cars need not be fast and fast cars may not always be fun. Matt advocates the purity and simplicity of manually swapping cogs while coping in silence of its impending doom. Matt's not hot. Never hot.

 

Comments

  • George Soros i remember you while i studying in US in ’97.

    Like or Dislike: Thumb up 2 Thumb down 0
    • Rashid bin Ohwai on May 18, 2018 at 4:18 pm

      I wonder if Proton got Bonds, will George Soros also buy? Cause cybertrooper said Proton is soon going to be Fortune 500 company by 2020….oh wai

      Like or Dislike: Thumb up 2 Thumb down 1
    • Sapot Harapan, sapot Soros, sapot Bapak P1, sapot P1, buy P1.

      Like or Dislike: Thumb up 1 Thumb down 3
  • Musk, I think you should concentrate to market auto electrical solution (drivetrain etc). it may easier to sell and the car project is to be manufactured in low volume. This will give you more time to react to market direction.

    Alah. Macam dia baca pun. Penat je aku type.

    Like or Dislike: Thumb up 7 Thumb down 0
  • Mana boleh ni? Bagaimana Geely mau beli Tesla utk memperhebatkan Proton?

    Like or Dislike: Thumb up 3 Thumb down 2
    • Michael Goh on May 18, 2018 at 4:45 pm

      Dah lah kalah teruk teruk, sekarang nak datang balik dan putar belit.

      Like or Dislike: Thumb up 2 Thumb down 1
    • 12yrsold john on May 18, 2018 at 4:50 pm

      Geely tak mahu beli Tesla la. Mereka membangunkan Volvo & Geely dah cukup.

      Like or Dislike: Thumb up 0 Thumb down 0
 

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