Tesla Turmoil Hits Its Bonds as Well as Stock Price: Chart
(Bloomberg) -- A spate of bad news on Tuesday not only hit Tesla Inc.’s shares but also its bonds. The automaker’s benchmark issue maturing in 2025 slumped by 3.4 percent, the biggest one-day drop since the bonds were issued in August, taking its yield to 7.17 percent. That’s a very important number for two reasons, writes Bloomberg Gadfly’s Liam Denning: First, it’s a spread of more than 440 basis points to the benchmark Treasury bond and, second, the spread pushes Tesla past it peers -- and not in a good way.
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