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> ...no problems with the bond/credit markets. That's simply not true. Their last bond issuance was well into junk bond territory, its unlikely they could issu
by bjl 9y ago
> ...no problems with the bond/credit markets.
That's simply not true. Their last bond issuance was well into junk bond territory, its unlikely they could issue another round without entering into insolvency.
Tesla's only option, should they need cash, is to issue more equity, which has its own set of problems.
- dx034 9y agoI'm sure they could raise more money but interest would probably be too high for it to make sense. They're already at a B- rating, a downgrade at any of the rating agencies would put them on the lowest (non-defaulted) rating. New debt would then probably carry 8-10% interest. Probably cheaper to raise equity by selling part of the company to another manufacturer.