Back in April 2019 I published a post on Tesla bonds. The thesis was that Tesla had large amounts of off-balance-sheet assets, mostly intellectual property. Although the financial situation of the company at the time was questionable, I felt that the bonds would be money good even in a potential bankruptcy. I bought the bonds for my personal account at about 87.
They are now trading for about 103. Not quite the run the stock has had LOL. Nonetheless, I am still holding on. The recent decision of Tesla to raise capital by issuing stock rather than debt makes them even more valuable. Nonetheless, I'm not adding since the upside is obviously not as great.
The basic thesis is still intact. Tesla makes the best electric cars in the world. The recent crop of German competitors falls short. What is Porsche thinking with a 250 mile range. Don't Porsche owners have weekend homes?
The technology of electric cars will continue to advance over the next five years or so. Eventually they will become a stable technology, and costs and marketing will take over. By then Tesla will be hard to unseat.
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