You know it's bad when... even the Saudis are hedging their exposure to your firm.

The FT reports that the country’s Public Investment Fund hedged most of its 4.9 percent stake in Tesla with the help of bankers at JPMorgan Chase after the market closed on January 17, according to four people with direct knowledge of the matter.

The arrangement meant that, although it still holds the shares, the PIF was left with little exposure if the stock price falls. Its potential gains are also capped if the stock rises, freezing its $2.9bn bet on the company.

The reaction is modest for now but extends losses from recent weakness...

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As The FT notes, the hedging arrangement has turned out to be well timed. A day after it was put in place, Mr. Musk revealed Tesla was cutting 7 percent of its workforce and warned that it was facing a “very difficult” period, and the stock fell, catching down to its bonds once again... 

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