Tesla in key bond offering
Tesla announced on Monday it intends to raise $1.5 billion in a key bond offering, as the US luxury electric automaker seeks to fund production of its new Model 3 sedan. Tesla share, which have risen 67 percent this year, ticked down 0.49 percent to close at $355.17 on Monday after the announcement. The debt offering marks Tesla’s debut in the junk bond market. Moody’s is rating the bond B3 with a stable outlook and Standard & Poor’s assigned the issue a B-rating. Tesla said it intends to use the net proceeds from the offering to further strengthen its balance sheet during a period of rapid upscaling with the launch of Model 3, and for general corporate purposes.