Tesla eyes bonds to fund Model 3

India Business Journal - - GLOBAL WRAP-UP -

Tesla will be rais­ing about $1.5 bil­lion through its first-ever of­fer of junk bonds. The US lux­ury elec­tric car-maker is seek­ing fresh sources of cash to ramp up pro­duc­tion of its new Model 3 sedan. The move to is­sue junk bonds - lower-qual­ity in­vest­ments that of­fer higher yields - rep­re­sents a bet by Tesla Chief Ex­ec­u­tive Elon Musk that bond in­vestors will be as hun­gry as stock in­vestors to back the company on ex­pec­ta­tions that its Model 3 will be a hit. So far, Tesla has been rais­ing money only to pay its bills.

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