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Tesla seeks $1.5 billion junk bond issue to fund Model 3 production

Reuters  |  DETROIT 

By Nick Carey and Paul LienertDETROIT (Reuters) - Tesla Inc said on Monday it would raise about $1.5 billion through its first-ever offering of junk bonds as the U.S. luxury electric car maker seeks fresh sources of cash to ramp up production of its new Model 3 sedan.The move to issue junk bonds - lower-quality investments that offer higher yields - represents a bet by Tesla Chief Executive Elon Musk that bond investors will be as hungry as stock investors to back the company on expectations that its Model 3 will be a hit. Tesla shares are up 67 percent this year, pushing the company's market ...

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First Published: Tue, August 08 2017. 09:33 IST