Amid Elon Musk’s darkest hour in late March – as his stocks and bonds tumbled in price – it seems there was at least one other billionaire willing to buy the ‘blood on the street’.
According to the latest 13Fs, George Soros’ investment firm took a $35 million stake in Tesla’s convertible bonds during the first three months of the year
One glimpse at the volume in TSLA converts suggests Soros Fund Management piled in as the price plunged at the end of March…
As a reminder, convertibles are hybrid securities, either bonds or preferred stock, that can be exchanged for a predetermined number of common shares. That effectively lets an investor participate in stock-price changes, but with the yield and greater security of a fixed-income instrument.
The March 2019 Converts bounced handsomely off those lows – tracking the stock’s divergent bounce – but in recent days has fallen back towards the lows, catching down to the straight bonds record low price.
As Reuters reports, this is not Soros’ first dealing with Musk…
In 2016, SolarCity Corp, a debt-laden solar panel firm backed by Musk and now owned by Tesla raised $305 million by selling future cash flows for a portfolio of solar projects to a fund advised by Soros Fund Management LLC.
Soros also previously held some Tesla stock, but he sold off his stake last year.
Of course, as with all 13Fs – this disclosure is now 45 days old and may not reflect current