Tesla to use stock-cash mix to pay off debt: Bloomberg

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Tesla CEO Elon Musk.
Tesla CEO Elon Musk.

Tesla will pay a 50-50 mix of stock and cash to holders of its bonds due in March, if they elect to convert the debt, Bloomberg reported on Thursday, citing a copy of the settlement notice.

Tesla has 0.25 % convertible senior notes coming due in March. As of September 2018, it had an unpaid principal balance of $920 000.

Tesla declined to comment on the report.

Tesla's move to use both cash and equity to return debt suggests that the company, which in the past has struggled with cash burn, is on a sustained path to profitability.

The electric-car maker reported free cash flow of $881 million in its latest quarter - the first time since the third quarter of fiscal 2016 - and CEO Musk has said the company will be cash flow positive and profitable in all quarters going forward.

The company is expected to generate $390 million in free cash flow in the fourth quarter, according to IBES data from Refinitiv.

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