--- title: "More Bad News: Tesla Is About to Owe $920 Million in Debt" description: "## Debtor's Prison" date: "2019-01-20" modified: "2019-01-20" authors: - name: "Jon Christian" job_title: "Executive Editor" link: "https://futurism.com/authors/jonc" url: "https://futurism.com/tesla-920-million-debt" categories: - "Advanced Transport" - "Tesla" tags: - "economy" - "electric vehicles" - "elon musk" - "tesla" --- # More Bad News: Tesla Is About to Owe $920 Million in Debt ![A nearly billion-dollar debt is about to come due for Tesla. That's more bad news about a trying month for the futuristic automaker.]() *\Image: Getty Images/Tag Hartman-Simkins\* ## Debtor's Prison Elon Musk-led electric vehicle manufacturer Tesla has had a chaotic month. [End-of-the-year figures]() showed that it had scaled up production dramatically in 2018, but weeks later the company announced that it was [laying off seven percent]() of its workforce. Now, *CNBC* [speculates that]() some of those financial jitters could stem from a nearly billion-dollar debt that's about to come due to for the automaker — a tough start to 2019 that could impact not just Tesla's long-term chances but the outlook of the entire EV industry. ## Financial Wrangling The debt stems from a financial instrument called a "convertible senior note," according to *CNBC*: basically, if the company's stock is trading for more than $359.87 on March 1, the debt will convert into Tesla shares — but if not, it'll owe the $920 million debt in cash. Why's that bad news for Tesla? Because the automaker's stock hasn't traded above that value in weeks, [the network reports](). ## Adaptions Tesla has clearly been making efforts to shore up its bottom line. In addition to he layoffs, it [dropped its longstanding customer referral program]() this past week. If it's forced to cough up the debt, according to *CNBC,* Tesla will wipe out approximately a third of its cash reserves — a bleak state of affairs for a futuristic venture that's [struggled with certain business norms]() as it attempts to upend an established industry. **READ MORE:** [Tesla Cuts 7% of Its Workforce, and Elon Musk Sees a ‘Very Difficult’ Road Ahead]() \[*CNBC*\] ***More on Tesla: [Elon Musk: Tesla Is Dropping Its Customer Referral Program]()*** ## Author I'm responsible for editing, assigning, and scouting at Futurism, as well as occasionally writing for the site. That work involves keeping an eye on a wide range of narratives and issues, but over the past few years I've become increasingly interested in how AI is shaping the future of media, the web, and information itself. My day-to-day often involves collaborating on reporting and commentary projects bylined by my colleagues, but I try to find time to do my own reporting as well; stories I've broken for Futurism have been cited by publications including the New York Times, the Washington Post, the New Yorker, Wired, Ars Technica, New York Magazine, the Columbia Journalism Review, Bloomberg, and more. I grew up in Southern Vermont and attended Vanderbilt University. Prior to Futurism, I contributed to outlets including the Boston Globe, Vice, Wired, Slate, the Atlantic, the Outline, Ars Technica and more, and did stints in farming and food service. I currently live in Brooklyn, New York, and in my free time I enjoy pinball, word games, cycling, running, and music production. ### Author social links [Bluesky]()