May 15, 2013
AND YOU GOT IN ON THE GROUND FLOOR:
Tesla: The anti-Solyndra (Chris Isidore, 5/15/13, CNNMoney)
If Tesla (TSLA) isn't able to pay back its loan within five years, the federal government could still benefit through warrants to buy more than 3 million shares of the company's stock at a fraction of the current price. Those warrants would disappear if the loan is paid off in five years, since they can't be exercised until 2018.At that point, the government will be able to buy more than 3 million Tesla shares for $7.54 each, and 5,100 additional shares for $8.94 apiece.While it can't exercise those warrants now, at the recent record high of $97.12, the warrants would net taxpayers a $277 million profit.
Posted by Orrin Judd at May 15, 2013 3:17 PM
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