You just cast a shadow on your own point. Tesla is paying .25% and 1.50% on the convertibles. They would have had to pay more if the risk was viewed by professionals as what you think it is. And Tesla seemed to think their future is bright too-they hedged the convertibles against diluting shareholders up to a $500 share price.
Once again, I will predict the future: you'll be buying the $400 strike puts because they're out of the money while posting that Tesla has no demand, CA sales are slowing, they only sold 100,000 cars last year and that's WAY less than Ford/GM/fill-in-name-here, bla bla bla, and you'll also be posting about how Tesla has quality problems and has a recall without noting that the "recall" was in July 2013 for like 1000 cars for a rear seat weld.
Justthefacts, ever hear of underwriting? GS backed this move with, I'm sure, with much personal collateral on Musk's part. These are going to be the point not discussed by anyone from GS or Tesla.
This was purely a scheme to make the rich richer regardless of the outcome of Tesla, the business.
I'll predict the future: you'll be touting the Gigafactory as the final piece of the puzzle to where Tesla will finally make money even though no battery company came in as a partner. You'll be touting the new Madagascar market as the one where everyone will be driving a GENII/III. During the Q3-16 CC, Musk will refuse to talk about China sales as he will only say interest is still there. Afterwards, you and your band of zealots will praise the shrewdness of Musk and once more say the future is almost upon us.
(( CA sales are slowing, they only sold 100,000 cars last year and that's WAY less than Ford/GM/fill-in-name-here, bla bla bla, )))
You're Mr. "justthefacts" so please explain why Tesla sales in California are declining.
How do you really think these scams work? Do you think it is obvious to everyone at the time that the businesses behind the scams were failing ? Do you think the people who lose money chasing these scams knew it at the time ?
Why can't you at least look at Tesla reasonably and discuss the hard facts like the decline of Sales in California despite having more stores?