4 ms·

No problem! And a 7.1% YTM isn't exactly a vote of confidence either, so your point still stands...

• rawland 9y ago
  Could you explain what you are talking about?
  • nopriorarrests 9y ago
    We are talking about interest rate on Tesla debt. It was 5.5% last august, and now, with downgrades and M3 delays, it is 7%. If Tesla would like to tap capital markets for more cash to borrow, interest rate might get uncomfortably high, because market considers Tesla debt getting more and more risky. At some level, interest rate gets prohibitively high, meaninig that markets do not trust you to pay back in time. Since tesla carries a lot of debt (6B?) which it needs to refinance, such move could be deadly.
    • rawland 9y ago
      Thank you.