Normally, I would say that's the case, but Tesla stock isn't normal. When they sell debt, their stock price goes up. Debt has one big advantage over equity too

Normally, I would say that's the case, but Tesla stock isn't normal. When they sell debt, their stock price goes up. Debt has one big advantage over equity too, which is that if the company goes under, bond holders are repaid if possible. Equity holders only own whatever is leftover.