5 ms·

Tesla bonds considered junk bonds ... https://encrypted.google.com/search?hl=en&q=tesla%20bond%20ratings#hl=en&q=tesla+bond+ratings+junk https://encrypted.goog

• MichaelBurge 11y ago
  Junk bonds sound more negative than they are. It just means they aren't a nation-state or a decades-old multi-billion dollar company, so there is more risk of default. But bondholders get priority over stockholders the same way preferred stockholders get priority over common stockholders. And as a result, it's less risky to buy bonds than to buy the company stock, since they could at least pawn off the factories and cars if the company has to be sold off. A quick Google search shows a market cap of 28 billion, and outstanding bonds worth 1.2 billion. So it seems unlikely to me that the company would be unable to be sold off for 1.2 billion to cover the bonds.