Tesla’s junk bonds sink to their lowest level yet
Telsa Inc.’s TSLA, -0.38% high-yield bonds fell to their lowest level yet on Wednesday, as concerns continued to swirl around Chief Executive Elon Musk and his fitness to run the electric car maker. The latest demonstration of erratic behavior were Musk’s emails to Buzzfeed News, in which he doubled down on a personal attack against one of the divers involved in the rescue of a youth soccer team from a cave in Thailand, by calling the man a "child rapist." Musk had previously called the diver, Briton Vernon Unsworth, a "pedo" before apologizing when Unsworth’s lawyer threatened to sue. Musk also swore at the Buzzfeed reporter in one email and accused him of failing to honor a request to keep his comments "off the record." Tesla’s 5.300% notes that mature in August of 2025 traded at 85.688 cents on the dollar to yield 8.029% late Wednesday, or at a yield spread of 513 basis points over Treasurys, 15 basis points wider on the day, according to MarketAxess. Shares were up 1.3% in morning trade Thursday.
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