Business magnate George Soros arrives to speak at the Open Russia Club in London, Britain June 20, 2016. REUTERS/Luke MacGregor
9:50 AM 05/16/2018
Billionaire liberal financier George Soros is buying up tens of millions of dollars in Tesla stock as the electric automaker struggles to produce an inexpensive vehicle for the everyday man.
Soros Fund Management purchased $35 million worth of bonds in the company that can be converted into common stock over time, according to a Securities and Exchange Commission (SEC) filing released Tuesday. The massive infusion comes as CEO Elon Musk works to restructure Teslas upper management.
Tesla, a 15-year-old automaker built around mass-producing electric cars, relies heavily on debt markets to raise money. The Silicon Valley juggernaut raised $1.8 billion in 2017 during its first go-around in the “junk” bond market. Wall Street analysts worry Tesla will have to jump back into that trough if it wants to remain stable.
Storm clouds have gathered over Tesla ever since the Model 3 went into production. Moodys dropped Teslas credit rating in March and changed the companys outlook to negative as the fledgling Model 3s production dwindles while the automakers financial situation grows dim. (RELATED: Unusual: Elon Musk Appears To Have Nervous Breakdown During Bizarre Tesla Earnings Call)
The move also comes as one of Soross major philanthropic groups gets forced out of Hungary.(RELATED: Hungary Asks Citizens For Advice On How To Take Down George Soros)
Viktor Orban, the countrys nationalist prime minister, said the Hungarian billionaire is an intruder into the countrys domestic politics, which are more and more being painted by Europes growing 2015 migrant crisis. Soros backs liberal refugee policies that would allow asylum seekers to settle in Hungary.
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