Tesla Bonds Are Falling Apart

People on Wall Street are unsure if the massive company that is Tesla will be able to pay back the debt they owe. 1.8billion bonds are due in August 2025 and on friday they hit a new record low. Trading for 84 cents on the dollar. It had went down from being 98 cents just last year.

Experts are worried about Tesla. Not to mention that Elon Musk is doing literally whatever he can to get the Model 3 out fast enough, to turn a profit. In hopes to use that money to pay off that enormous debt.

The reason why Tesla had acquired so much debt was to put them self in the forefront at such a rapid pace in the auto industry for electric cars. But even though they may be one of the top companies, other big players such as Mercedes-Benz and Ford are gunning for them.

But that debt may soon backfire because it’s set to grow even more than 9 billion dollars before 2025. Including a total of 2.7 billion this year and next year. So it’s a bit alarming for them as of right now.

As of right now people are split down the middle if Musk will turn a profit or not. Some saying that pushing as hard as he is right now he will turn a profit. While others are saying he’s just digging his own grave.

Lately the way he has been acting too hasn’t been helping his cause. Musk is the face of all of his companies while calling a well-known man a pedophile and smoking a blunt on a podcast is concerning more people. Not to mention he was claiming on twitter that the he would go private selling shares at 420$. Then soon abandon that because it was then described internally as a shareholder revolt. That had led him into being investigated by the SEC.

On the 1st of August Musk had said that they plan on paying off the debt. Instead of Refinancing it. He had also put some rumors down by saying Tesla will need to raise cash soon by selling some stocks.

Experts are saying as of right now it’s going to be a uphill battle to raise money until the SEC investigation is over.

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Tesla Price Drop

Ever wanted to buy a Tesla but couldn’t because of its high end price? Well todays that day! They have recently dropped the base price for it’s model. The 75&75D have both been cut by $5,000 and $3,000 while the model S an X has been cut by $2,000. So Tesla is now that the affordable price of $69,500 so now would be the best time to buy one.

Cutting prices wouldn’t be the only thing that’s they’re doing. Such as Glass Roofs, Power LiftGate, High-Speed charger. So Tesla isn’t slowing down anytime soon. It’s seems like they’re trying to make it more affordable for the common man, making it more easier to attain one. With the model X it’s going to come with an 20inch with a 500$ upgrade for the second row console. With all these price drops and modifications the Model S is going to be discontinued. It’s going to be starting at 66,000$ while they last.

But not everything is getting a price cut, matter of fact some are getting more expensive. So it’s a very give take. The Model 100D is sky rocketing by 5,000. While Model s is 1,000 due to it being discontinuing. Even though the Model X is going to have some upgrades it’s getting a price increase with of 9,500.

Even though the S&X are changing in price there will be no significant changes to either.


Here’s the lineup in case you’re in the market for one:

Model S:

75:69,000

75D:74,00

90D:87,500

100D:97,500 beginning April 24

P100DL:140,000 beginning April 24

Model X:

75D:82,000

90D:93,500

100D:99,500 beginning April 24

P100DL:145,000 beginning  April 24