In Q3 2018, Tesla made a profit of $312 million (about 4%), but capital expenditures were near the $2 billion level. With about $2 billion in cash according to a September 30 government filing, the company also holds about $9.8 billion in total liabilities and assets of $7.9 billion.
The $920 million bond payment due on March 1 includes convertible debt, so if the company’ stock is trading at or above $359.88, Tesla has the option to pay back the debt with stock as opposed to cash. The price of Tesla now currently stands at around $310, which means it needs to rally over 16 percent within the next couple of trading sessions.
The bond payment comes amid the Securities Exchange Commission (SEC) asking a judge to hold Musk in contempt for violating a previous settlement agreement, Musk took to Twitter to respond by saying that “Something is broken with SEC oversight.”
Tweets have placed Musk in hot water with the financial regulator–notably last year when he sent a tweet stating that he would like to take the company private, immediately causing intense reactions from investors and a surge in the electric car maker’s share price. As part of a $20 million fine settled with the SEC, Musk must get prior approval before sending tweets.
According to some analysts, this latest legal infraction could once again put the electric carmaker and Musk in a negative spotlight–something both could do without at the present time.
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