Tesla Enters Securities With a Boom

The transcript discusses Tesla's recent financial activities, including selling flamethrowers and marketing $546 million in bonds backed by leases of its Model X and Model S vehicles. Despite high demand for these bonds, Tesla still faces significant cash flow challenges. Bloomberg's Alister Marsh provides insights into the bond market's perception of Tesla, highlighting the company's financial struggles and the appeal of its bonds due to Elon Musk's influence and attractive yields.

What financial strategy did Tesla employ alongside selling flamethrowers?

• Launching a new car model

• Marketing bonds backed by vehicle leases

• Issuing new stocks

• Reducing production costs

What is a major financial challenge Tesla is facing despite its bond sale success?

• Declining car sales

• Cash flow problems

• High production costs

• Lack of investor interest

How did Tesla's junk bonds perform after being issued last year?

• They traded above the issue price

• They remained stable at the issue price

• They traded below the issue price

• They were withdrawn from the market

What is one reason for the high demand for Tesla's bonds?

• Low interest rates

• High stock prices

• Government subsidies

• Elon Musk's appeal

What yield advantage did the lowest rated tranche of Tesla's bond offer?

• 100 basis points above benchmark

• 260 basis points above benchmark

• 500 basis points above benchmark

• 50 basis points above benchmark