Citigroup Structured Investment Tied to Tesla Stock May Expose Investors to Risk of Capital Loss
The White Law Group is evaluating potential FINRA arbitration claims on behalf of investors who purchased structured products issued by Citigroup and tied to the performance of Tesla Inc. stock.
One such product—Citigroup’s 2,000 Buffered Fixed Coupon Autocallable Equity Linked Securities due November 4, 2022 (CUSIP: 17329T450)—was issued in November 2021 with a total face value of $20,000,000. This note promised premium coupon payments but included a buffer and knock-in feature that could result in significant losses if Tesla’s stock underperformed.
Details of the Investment
Issue Date: November 3, 2021
Linked Security: Tesla, Inc. (NASDAQ: TSLA)
Product Type: Buffered Fixed Coupon Autocallable Equity Linked Security
Face Value: $20,000,000
Final Payout: Based on Tesla share price on November 4, 2022
Payout Scenarios:
? If Tesla closes ? $718.68 (100% of initial): $1,000 + final coupon ($13.55%)
? If Tesla closes ? $505.31 (70% buffer level) but < $718.68: $1,000 + final coupon ($13.55%)
? If Tesla closes < $505.31: $1,000 × (final price ÷ $718.68) — potential partial loss of principal
Total Loss Potential: Up to 30% buffer protection, but beyond that, principal is at risk
Why Could the Investment Lose Value?
- No principal protection below the 70% downside threshold
- Exposure to Tesla stock volatility
- Final payout reduced if Tesla drops significantly
- Automatically called if Tesla closes above initial value on an observation date
- Estimated value at pricing: $990.04 per $1,000 note
Understanding the Risks of Structured Notes with Buffers
- Subject to issuer credit risk (Citigroup Global Markets Holdings Inc.)
- Tesla volatility can quickly erode the buffer
- Not FDIC insured or principal guaranteed
- No equity upside beyond fixed coupon
- Complex structure may not be suitable for all investors
FAQs – Citigroup Structured Note Linked to Tesla (CUSIP: 17329T450)
Q: Will I receive regular income?
A: Yes, the note pays a fixed monthly coupon at a 13.55% annual rate, provided it isn’t called early.
Q: What is the downside protection?
A: The note includes a 30% buffer. You won’t lose principal unless Tesla’s final share price drops below $505.31.
Q: Can the note be redeemed early?
A: Yes. If Tesla closes above $718.68 on any observation date, the note is automatically called and pays $1,000 plus the final coupon.
Q: How much could I lose?
A: If Tesla falls more than 30% from its initial value, you’re exposed to losses equal to the percentage drop beyond the buffer.
Q: What was the initial value estimate?
A: $990.04 per $1,000 note, already slightly below par due to issuer fees and market risk.
Free Consultation
The White Law Group is investigating claims involving Citigroup structured notes. If you experienced losses, contact our office at (888) 637-5510 or visit whitesecuritieslaw.com for a free case evaluation.
Last modified: June 9, 2025
