“This reminds me of something similar he once said to me, many years ago, after I came back from a week’s visit with my family in Canada – that his life had operated quite smoothly in my absence”.
Given that this is the first time Tesla is going to the debt markets with a straight bond offering, there is no real precedent with which to assess market appetite.
After Tesla made the announcement, Standard & Poor’s reaffirmed its negative outlook for the carmaker and assigned a “B-” rating for the bond issue.
That news comes to us from Electrek, which has been reporting that Tesla’s less focused on the battery naming scheme for the more mainstream Model 3 and more on its actual range instead in order to appeal to a wider audience.
But even as Friday’s deal seemed to be going well, many fixed-income accounts expressed some scepticism about a deal from a company that has been burning through cash.
“The interest rate, redemption prices and other terms of the notes are to be determined”.
We are excited to announce that, as of today, all Tesla vehicles produced in our factory – including Model 3 – will have the hardware needed for full self-driving capability at a safety level substantially greater than that of a human driver.
Musk, 46, isn’t one to dial down expectations or stay away from painting colorful imagery of his products.
Tesla had over $3 billion in cash on hand at the end of the June quarter, compared with $4 billion on March 31. We expect the company to raise more money to build a new production facility in 2020, as well as Gigafactories 3,4, and 5.
But short sellers weren’t the only ones with a dour opinion of Tesla.
Lead underwriters on the junk bond rally include major financial institutions – Goldman Sachs, Morgan Stanley, Barclays, Bank of America Merrill Lynch, Citigroup, Deutsche Bank, and RBC, according to the IFR financial publication.
Shares of Tesla closed down 0.5 percent at $355.17 on Monday.