Using junk bonds Tesla has managed to attract $ 1.8 billion
As we reported this week, the company Tesla has taken the first issue junk bonds to raise funds required for the expansion of electromobility Model 3. The market has accepted the offer of Tesla with enthusiasm.
Junk bonds are bought by investors willing to take a risk for a high yield. However, the presence of huge money supply, ready to rush into the areas that promise the greatest return, led to the fact that profitability in this segment fell to the lowest in three years level. As a result, companies like Tesla can obtain cheap financial support.
In the case of Tesla managed to sell unsecured bonds with a maturity of eight years and a yield of 5.3% to $ 1.8 billion. The company originally expected to sell bonds worth $ 1.5 billion, but increased production, seeing great interest from buyers.
Although the ability of Tesla to attract large funds is associated with the dot-com bubble, analysts say that the analogy is inappropriate. In any case, lack of wanting to capitalize on the market development of electric vehicles no. During the time since the release of Tesla stock in 2010, they went up in price 21 times, from $17 to $357,72.