Tesla bonds drop after CEO cuts off analysts on earnings call

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Americas
Davide Scigliuzzo

Tesla’s bonds followed the company’s equity lower in early trading on Thursday, a day after chief executive Elon Musk cut off analysts during an earnings call, unsettling investors.

The company’s 5.30% 2025s dropped over a point to 87.75 cents on the dollar in early trading on Thursday, according to MarketAxess data.

The notes, rated Caa1/B-, which have never traded above par since being issued last August, are now only a couple of points above their all-time low of 86 cents on the dollar reached on April 2.

Tesla’s shares were down 7.9% in early trading on Thursday. If the losses are held, they would indicate a US$4bn loss in market capitalisation for the carmaker since Wednesday’s close. nL1N1SA0L4nL3N1S95D2

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