Quick thread on $TSLA convertible bonds. $TSLA just issued some convertible bonds, sold equity, and entered into a hedge related to the converts. The net proceeds (ignoring greenshoe) were around $2.1B: $1.6B converts, $750M equity, and paid $260M for the hedge /1 $TSLAQ The converts have two important components: (1) a low coupon (2%) bond issued at a discount and (2) a call option with a strike of $309. If you buy $100 of convertible bonds, you are essentially paying $74 for a $100 face value bond and $26 for the call option. /2

Thread on the OCF line item “Operating cash flow related to repayment of discounted convertible notes” from $TSLAs Q1 letter that zach was kind enough to provide. This item deducted $188.1M from OCF and no explanation was given. Anyone know whats going on? $TSLAQ 1/ This deduction from OCF raises the question: did $TSLA recognize $188.1M of non-cash income on the I/S? Looking through the applicable guidance, I did not see an obvious basis for an I/S impact from the debt repayment, but I also did not see a basis for an OCF impact. 2/

This is a thread on $TSLAs shiny new amended and restated ABL. whats new, what does it mean, and why is it important? Warning: high risk of boneheadedness ahead. side effects may include inane youtube nonsense. In case somehow not clear, these ramblings are not advice. 1/ Quick background: $TSLA amended and restated its ABL on 3/6/19 after 10 previous amendments. The ABL lets $TSLA borrow against eligible assets pledged to the lenders as collateral. 2/