No. of Recommendations: 3
So it's possible for Tesla to deliver cash instead of common stock in response to a conversion request. It might do that to reduce the dilutive effect of a redemption. That's not an obvious risk right now, but if by 2024 Tesla were awash with cash it might do exactly that.

Given Tesla's cash flow the last few years, and the fact that as of March 31, 2019 they have over $10.3B in debt, over 80% of which comes due before 2024 https://ir.tesla.com/static-files/6c1d8708-1f9e-4cf9-b31a-a7... I kind of doubt that Tesla will be 'awash with cash' at the time these notes come due.

That said, it would be a (low probability, IMO) risk that the OP should consider - if Tesla chooses to deliver cash at maturity, and the $500 stock price on that day is due to a spike up in the prior couple of weeks, the 'volume weighted average price' (VWAP) of the stock for the prior 20 days (usually around a month) would be less than $500, so the OP would be receiving less than ~$1.6k that the 3.22 shares of stock would be worth on that day. How much less would depend on how steep the spike up in price was.

AJ
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