Tesla halts bond sale amid market turmoil

Tesla is delaying a bond sale worth more than a billion dollars backed by leases on its EVs. Tesla pulled the deal due to market turbulence.

Several factors led to the cancellation. However, Tesla will probably wait for the markets to calm before completing the sale.

The concern was around short-term interest rates rising sharply due to surging inflation and worried over the economic fallout of the Russian invasion of Ukraine.

These factors prompted multiple issuers to postpone their financial plans until the markets calm.

This marks the third pulled asset-backed bond deal in the past week. World Omni postponed an auto lease-backed offering on Friday.

The same day, Affirm Holdings Inc also paused an offering of debt backed by consumer instalment loans, reports Bloomberg.

This would have been the seventh bond sale Tesla planned since early 2018.

Tesla did not provide a comment on the pausing of the sale. As well, none of the banks arranging the deal commented. These banks included Credit Suisse, Barclays, Wells Fargo and Citigroup.

Previous Article

VinFast announces Canadian pricing for VF8 and VF9 electric SUVs, battery not included

Next Article

The Boring Company’s plan for tunnels connecting San Antonio’s airport to its downtown is moving forward

You might be interested in …