Assume Tesla Inc. $($US electric vehicle manufacturer$)$ intends to issue $2-$year Notes worth US $$1,000,000$ in September $2024$ and is concerned that the interest rate expectations over the next few month s would affect them adversely and wishes to hedge this risk. Given this scenario, please answer the following questions:

$($a$)$ Identify the main financial risk faced by Tesla given the above scenario. Systematically review and critically evaluate research from different sources to explain why you have identified this as a risk, and whether you would consider hedging. Please discuss in your answer the outlook for the underlying variable and cite evidence of an adverse and$/$or favourable direction.

$($b$)$ For the risk, you have mentioned in part $($a$)$ please recommend a hedging strategy that is consistent with the outlook discussed in part $($a$)$ and explain why you have chosen this strategy above all others.