Because each TTSLA represents 1/100th of one share of TSLA stock. Right now, because of the presale, they are being sold for ~20% discount to the TSLA price. So, you need 100 TTSLA to equal 1 share of TSLA. But TTSLA pays a dividend as well, which can vary between a low of 3% and a high of 20%, depending on where TTSLA is trading in regards to the price of TSLA stock. If its at peg, the dividend will be 3%. If its below peg, the dividend will be higher to entice people to buy TTSLA and get it back to peg.
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Cool, thanks! I was just wondering, why isn't it tracking TSLA in 1:1 ratio?
Nevertheless, interesting to see if this model works. Will the APR be enticing enough for people to keep on on buying.