

Tesla’s loan payback deprives US of stock options worth $270 million - istvanp
http://qz.com/87671

======
jgeorge
The way this article is written really kind of irks me. The stock warrants
were there as a guarantee in case Tesla defaulted on the loan, so that if they
defaulted the government would have some collateral to collect in order to
lower it's financial risk.

Tesla paid off the loan (good for them for doing so). So the loan collateral
doesn't get collected.

"Depriving" the government of this stock, after paying off the loan, is folly.

If you take out a loan to buy a car, you put the car itself up as collateral
for the loan. You can either pay off the loan, and keep the car, ir you can
default on the loan, and lose the car.

Tesla just did the same thing except they used "car company" instead of "car".

Being snarky that Telsa "deprived" the government out of the loan collateral
is akin to saying that you think the bank should own your car after you pay
off your car loan, because you're depriving the bank of the value of the car,
since you paid it off and they won't collect on the collateral.

What planet does this author live on where loan guarantors get both the loan
payment _and_ the collateral? Because I'd like to go there and loan the author
every penny I can.

