Tesla's Bond Sale and Its Impact on the Company

TapTechNews October 7th news, according to Bloomberg, Tesla is currently pre-marketing a bond worth 783 million US dollars (TapTechNews note: currently about 5.525 billion Chinese yuan) in the market, and this bond is collateralized by the car lease contracts of high-quality borrowers.

It is reported that this sale is led by Societe Generale and is expected to be officially priced next week.

In March, Tesla had issued a 750 million US dollars asset-backed security (ABS) with a maximum coupon rate of 5.53%.

ABS sales are becoming increasingly common among automakers, and this bond sale will be Tesla's second such transaction this year. This transaction enables Tesla to obtain liquid funds without incurring other debts that may increase the company's costs.

In 2022, the total amount of financing through securitization by Tesla was nearly 4 billion US dollars, setting a new historical high for the company. But compared with many traditional automakers, the company has a lower frequency of financing through securitization.

Tesla will hold a third-quarter earnings conference call on October 23, and the company had already reported earlier this week that it delivered 462,890 cars in the third quarter.