The Battle Over Tesla Stock Is Over—At Least for Now

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• 冨田 有吾

  米国カリフォルニア州弁護士（専門：移民法）

  ・2021年04月03日

  But now, Tesla’s short-interest ratio is about 6%. Though it’s still higher than average, there is an important mitigating factor: Tesla has hundreds of millions in convertible bonds outstanding. Most were issued long ago and can be converted into Tesla stock at a price of around $65 a share.
  
  Tesla stock is worth more than 10 times that amount. Not surprisingly, the convertible bonds have rallied more than 500% over the past year.
  
  That’s great news for convertible bond holders, but many convertible bond investors aren’t interested in Tesla stock. Some are convertible arbitrage investors. They will buy convertible bonds and short the underlying stock. That way the arbitrage trader can lock in an attractive bond yield.