Thread by @cppinvest

I almost feel like I should apologize in advance, but the comedy value here was just too good. This is what a club of idiots sounds like when they have meetings.

"Tesla has $5 billion in converts that are in the money."

Which I guess means they will always stay in the money?

"How do you expect this to play out?"

"Unsure. Most wont won't convert until needed."

Oh, I got it now. Tesla has these bondholders in its pocket and when the need to delever, they will. Automatic. Easy, peasy. . .

Thankfully someone on the bull side knows how to read an indenture and prospectus. Whoever that AllahDente is, he's the only sign of intelligent bull life I've seen yet.

But it gets worse.

I also forgot about the "bullish converts" that Chamath and Baupost own, Baupost being that famous growth investor that loves to pay up for awesome growth stories at inflated multiples. But, it's still nice to have those "bullish" bonds buttressing value.

And then sometimes it's just better to pay debts tomorrow instead of today. Or something. God, it's nice to have these converts in the capital stack. Look at all the flexibility they give you!

Let's just feed mayonnaise right to the tuna.

Call Starkist.

Finally, allow your imaginations to run wild to that day when Tesla has no net debt. Because you know, they just didn't pay off one convert with the proceeds of a new one.

Oh wait. . .

And don't forget gravity, of course.

Imagine, instead, another song from @PollsTesla.

For the record, here is the convert stack and conversion prices:

$1.38bn @ $359.86 due 2021
$0.97bn @ $327.50 due 2022
$1.84bn @ $309.82 due 2024

Who wants the under we are lower than all three of these thresholds in one year?