How Elon Musk might make $920 million in Tesla debt go away

A big pile of debt comes due at Tesla on March 1 — $920 million worth. But starting in two weeks, the company has a chance to make it disappear.

The debt is in the form of convertible bonds, a kind of instrument that can be converted into shares of Tesla stock under certain conditions. If conditions are met, and all bondholders convert, Tesla would suddenly gain $920 million worth of much-needed financial flexibility.

To spark a conversion, Tesla needs to boost its stock price to $359.87 or higher at some point in the three-month period between Dec. 1 and Feb. 28. The higher the price goes, the more likely holders will convert.

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