If Tesla's stock was much higher, the company could convert debt to equity and pay back lenders that way.
On Friday, close to $1 billion in debt comes due for Tesla, an obligation that will wipe out about a quarter of the company's cash. According to regulatory filings, Tesla has $920 million in convertible senior notes set to expire on March 1, at a conversion price of $359.87 per share. Tesla's stock hasn't traded above $359 for weeks, and closed on Tuesday at $297.86.
But Tesla has been showing signs of financial strain for a while. The company decreased capital expenditures throughout 2018 and plans for only a modest increase this year. All that while, Musk has tantalized Tesla fans with the promise of speedy repairs and body work for Tesla owners, as well as"full self-driving" features and a pipeline of new products like sleek solar roof tiles, new electric cars and trucks.
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