Meet Tesla's New Bondholder: Billionaire George Soros

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

Comments

JelloBeyonce 2ndamendment Wed, 05/16/2018 - 11:01 Permalink

And yet Soros Fund Management doesn't even make the top 20 largest shareholders.....
http://investors.morningstar.com/ownership/shareholders-major.html?t=TS…

So if buying into Tesla makes one "evil", where does that leave -
Vangaurd
BlackRock
State Street
Fidelity
Capital World
Geode
Invesco
T Rowe Price
Northern Trust
Credit Suisse
And dozens others of the largest money management firms that also own most of the largest "competing" companies in most every industry...including Coca-Cola, PepsiCo, AT&T, Verizon, T-Mobile, Google, Facebook, Apple, Microsoft, The largest banks, the largest defense Contractors, the largest auto makers, the largest department stores, the largest grocers, the largest manufacturers in most every industry, the largest chemical and "ag" companies, the largest computer makers, the largest home builders, the largest media companies, the largest entertainment companies, etc., etc., etc.....

In fact, most everything you read, watch, listen to, eat, wear, drive, consume, use, etc. are owned by these same largest money management firms....whom are also in business with people like Soros (and the rest of the worlds billionaires).

So why are we singling out Soros?
Just jumping on the bandwagon......................

In reply to by 2ndamendment

LiteBeeer JRobby Wed, 05/16/2018 - 11:23 Permalink

Wernher von Braun’s 1949 book, Project Mars: A Technical Tale shows the name Elon:

The Martian government was directed by ten men, the leader of whom was elected by universal suffrage for five years and entitled “Elon”. Two houses of Parliament enacted the laws to be administered by the Elon and his cabinet.

Maybe his parents were comic book fans.

In reply to by JRobby

freedommusic Blazing in BC Wed, 05/16/2018 - 13:41 Permalink

Look, I know Musk is an arrogant flake but when I saw news stories of Tesla cars being incinerated, I knew then that this was corporate sabotage precluding a hostile take over in the company's weakness. Well look at the scumbag who emerged to buy the 'blood on the street'. What is wrong with these parasites? They create nothing but magic paper to control the world.

In reply to by Blazing in BC

Blankenstein bullock Wed, 05/16/2018 - 13:38 Permalink

And the way he makes money.  He has had  remarkably high returns.  "in 2010 was reported to be one of the most profitable firms in the hedge fund industry,[2] averaging a 20% annual rate of return over four decades"

https://en.wikipedia.org/wiki/Soros_Fund_Management#cite_note-3

Those returns are higher than Bernie Madoff's were.

And what was said about those back in the day? 

"Avellino & Bienes, represented by Ira Sorkin, Madoff's former attorney, were accused of selling unregistered securities. In a report to the SEC they mentioned the fund's "curiously steady" yearly returns to investors of 13.5% to 20%."

https://en.wikipedia.org/wiki/Madoff_investment_scandal

Interestly, Forbes called those kinds of returns 'curiously steady' when talking about Bernie Madoff And the Wall Street Journal referred to them as "hard to believe"in 1992.

 

In reply to by bullock

sessinpo JelloBeyonce Wed, 05/16/2018 - 13:51 Permalink

JelloBeyonce 2ndamendment Wed, 05/16/2018 - 11:01 Permalink

And yet Soros Fund Management doesn't even make the top 20 largest shareholders.....
http://investors.morningstar.com/ownership/shareholders-major.html?t=TS…

------

The smart ones go after assets from companies heading toward bankruptcy. Shareholders get screwed. Bond holders divide the assets. No reason for anyone to be a shareholder unless you liked getting screwed.

In reply to by JelloBeyonce

Give Me Some Truth Offthebeach Wed, 05/16/2018 - 11:21 Permalink

You nailed it - the electric car and solar panel “necessity” emanates from our not-to-be challenged green government crusade, the central tenet of this religion being that man-made global warming is the greatest threat to the planet and all its inhabitants. Basically, letting Tesla fail would be a major hit/embarrasement to the crusaders of our new world religion. I don’t think “they” can “let” such a hit happen.

In reply to by Offthebeach

el buitre Give Me Some Truth Wed, 05/16/2018 - 13:18 Permalink

Hm, in areas of the planet that don't have massive hydro power, exactly where does the energy come from to charge the Tesla battery?  Did someone whisper coal, oil, and natural gas?  The irony of the use of Tesla's name for this asshole company is that he developed an idea to get free energy from the earth.  When he presented the idea to JP Morgan, Morgan asked him, where exactly do I put the meter, and refused to fund it.  Here is a very interesting real factoid.  Donald Trump's uncle, John G. Trump was a leading physicist.  When Tesla died (1943), the FBI and War Department (honestly named in those days) raced to his hotel room to confiscate his notes.  I forgot who won, but I think it was the War Department.  Anyway, all of Tesla's notes were turned over to John Trump for evaluation.  You can't make this shit up, so here is a short excerpt from the CIA FactBook (also referred to as Wikipedia) from John Trump's war years:

In 1943, as the technical aide in Division 14 of the NDRC, Trump reviewed and analyzed the papers of Dr. Nikola Tesla when Dr. Tesla died in a New York City hotel. The research was completed on behalf of the Alien property Custodian office in Washington DC. From February 1944 to the end of the war in Europe,

Alien property custodian?!!  Tesla, born a Croatian,  had long been a naturalized citizen when he died at 86.  Did the War Department know something special about the great genius, Nicola Tesla?  Is Musk also an alien? :-)

In reply to by Give Me Some Truth

PlayMoney Piranha Wed, 05/16/2018 - 12:42 Permalink

Always thought he was a bit whacked, but smart with his money. George ...that aint smart buddy. In fact I am getting together a group to buy the empty battery building in the future to turn it into the worlds largest indoor flea market.

In reply to by Piranha