Question
After reading the the following articles on Tesla: Tesla article 1( Who Wants to Buy a Tesla Bond?Deals proposed yield of 5.25% is low considering
After reading the the following articles on Tesla: Tesla article 1( Who Wants to Buy a Tesla Bond?Deals proposed yield of 5.25% is low considering companys junk rating Tesla plans to offer an eight-year, $1.5 billion unsecured bond this week. PHOTO: JAMES GLOVER ByMatt Wirz and Sam GoldfarbAug. 9, 2017 6:00 a.m. ET) Preview the document, Tesla article 2 (
Tesla Bonds Tumble in Sign of Concern Over Finances The price has dropped to 97.75 cents on the dollar in recent trading, pushing up the yield Tesla sold $1.8 billion of low-rated bonds on Aug. 11 to help pay for the Model ByMatt WirzAug. 21, 2017 5:27 p.m. ETTesla Inc.s TSLA ) Preview the document, what are the positives and negatives regarding the company's credit quality. Would you buy the Tesla bonds? Why or why not? Keep in mind that these articles were from several years ago, when Tesla was not nearly as financially secure as it is now.
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