Billionaire George Soros Spends $35 Million, Becomes Tesla’s New Bondholder

Tesla Motors has been facing concerns from investors recently, in the wake of production issues, accidents and senior staff departures.

Nevertheless, there is some good news, too, because Elon Musk’s company has managed to attract George Soros on its side.

Reuters reports that the 87-year old billionaire has become Tesla’s new bondholder after an investment firm, founded and controlled by him, took a stake in Tesla bonds for the first three months of the year.

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The convertible bonds, which are basically hybrid securities that can be exchanged for a number of common shares, cost Soros’ firm $35 million and allow the controversial businessman to participate in stock-price exchanges indirectly, “but with the yield and greater security of a fixed-income instrument”, according to the news outlet.

Contacted by Reuters to comment on the investment, a spokesperson for Soros declined to respond. However, this isn’t the first time when the American billionaire with Hungarian origins has his eyes on Tesla Motors, as he previously held some stock in Musk’s company, which he sold last year.

In the meantime, Tesla’s founder spoke to employees earlier this week, telling them that the automaker is undergoing a “thorough reorganization”, likely referring, among others, to a production halt at the Fremont factory to adjust Model 3 assembly.