Posted November 06, 2018 09:00:53Tesla Motors has announced a $2 billion stock deal with bond firm Ariel Investments, making it the largest deal in the company’s history.
The deal will create the second-largest bond fund in the world, after General Motors’ $20 billion investment in bond fund Bonde, with a net value of $1.6 billion, according to a statement from Ariel Investments.
Ariel Investments’ chairman, Steven A. Tulloch, will be the chief executive officer of the new bond fund.
The investment company is based in Omaha, Neb.
A statement from Tullch says the two companies have agreed to work together to grow the bond fund and that the new fund will invest in Tesla shares.
Tulloch has been chief executive of Tesla since 2014.
Ariel Investments has been involved in a number of other Tesla investments, including a $20 million investment in the electric vehicle maker in 2017.
Tesla is in the midst of a $5 billion buyout of the carmaker, which is expected to be completed by the end of the year.
Tulsa’s city is investing in bonds that are being sold by Tesla as part of the deal, and will pay the company $100 million for each bond, the statement said.
The bonds are being held by Tullock, a former New York City mayor who is also a Tesla board member.
Tulla said in a statement that Ariel Investments “is a leading, well-respected investor and we are delighted to partner with them.”
The new bond will be available to purchase at the Tesla stock exchange.